FTX Token plunged by over 70% in today’s session, as sentiment surrounding Binance’s potential buyout of FTX continued to raise market eyebrows. Following speculation that FTX could be insolvent, Binance’s Changpeng “CZ” Zhao moved to acquire the firm, pending due diligence. Solana is also significantly lower, due to FTX’s sister company Alameda currently holding large amounts of SOL.
FTX Token (FTT)
FTX Token (FTT) continued to sink on Wednesday, as the token lost over 70% of its value in today’s session.
Following yesterday’s high of $19.51, FTT/USD plunged to an intraday low of $3.15 earlier in the day.
The move came as markets continued to digest Binance’s decision to agree to an acquisition of the firm, pending due diligence (DD).
Many believe that the DD could show the true significance of FTX’s balance sheet, which some expect could intensify the current sell-off.
As of writing, the 14-day relative strength index (RSI) is at 11.98, which is its weakest point on record, eclipsing yesterday’s record reading of 23.79.
Despite prices already in the depths of bearish territory, there could be more still to come, should 1) an acquisition not be completed, or 2) damning news be revealed about FTX.
In addition to FTT, solana (SOL) was another notable loser on Wednesday, as the once top 10 cryptocurrency fell by nearly 40%.
SOL/USD dropped to a low of $16.47 on Wednesday, less than 24 hours after residing at a peak of $31.06.
This decline in solana comes as traders believe that FTX’s sister company Alameda could move to sell its holdings of SOL, to obtain liquidity.
Looking at the chart, SOL is now down for a fourth straight day, with its RSI currently tracking at 26.95, close to a floor of 27.00.
In addition to this, the 10-day (red) moving average looks set for a downwards cross against its 25-day (blue) counterpart, which could trigger even more declines.
As of writing, SOL has marginally rebounded, as is currently trading at $18.70.
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Do you expect solana to fall below $10.00 this week? Let us know your thoughts in the comments.
Eliman brings an eclectic point of view to market analysis, he was previously a brokerage director and retail trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX.
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