FTT Fire Sale Sends Token Over 70% Lower, SOL Also Falls Significantly – Market Updates Bitcoin News

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).

Biggest Movers: FTT Fire Sale Sends Token Over 70% Lower, SOL Also Falls Significantly
FTT/USD – Daily Chart

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 the fact that prices are already deep in bearish territory there may be more to come should an acquisition fail or damning information be released about FTX.

Solana (SOL)

FTT (and solana) were the other notable losers on Wednesday. The once-top 10 cryptocurrency dropped by almost 40%.

After settling at $31.06 on Tuesday, SOL/USD dropped as low as $16.47 Wednesday.

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.

Biggest Movers: FTT Fire Sale Sends Token Over 70% Lower, SOL Also Falls Significantly
SOL/USD – Daily Chart

The chart shows that SOL has fallen for the fourth consecutive day. Its RSI is currently at 26.95. This puts it close to a floor level of 27.00.

The 10-day (red-colored) moving average is expected to cross the 25-day counterpart (blue), causing further drops.

SOL was trading at $18.70, and has slightly rebounded as of the writing.

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Eliman Dambell

Eliman is a market analyst with a diverse perspective. He has previously been a broker director and an educator in retail trading. He is currently a commentator on various asset classes including Crypto, Stocks, and FX.

Images CreditsShutterstock.com, Pixabay. Wiki Commons. Maurice NORBERT.

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