With the cryptocurrency market facing turbulence, FTX‘s liquidation decision has been a hot topic. The renowned cryptocurrency exchange is considering to liquidate up to $3.4 billion in digital assets as people speculate about the potential impacts on the market. This step has drawn concerns particularly from U.S. bankruptcy regulators about whether selling crypto holdings en masse can further destabilize the market or not. To temper such fears, FTX has agreed to privately update the U.S. Trustee and creditor committees on planned sales. This is done with the intent of preventing panic selling.
The sell-off by FTX comprises holding of Bitcoin, Ether, Solana, and other tokens to raise capital and pay back creditors. It’s notable that Solana, being one of the largest holdings, has caught the attention of analysts who foresee a significant impact on it. However, many of these tokens are locked until 2025 which alleviates immediate liquidation concerns.
legal complications might arise as FTX is currently involved in a $21 million lawsuit against LayerZero over disputed transactions. These issues may potentially interfere with the timing and feasibility of FTX’s planned liquidation.
Putting these concerns aside, Toncoin, Wall Street Memes, Radix, Bitcoin BSC, and Bitcoin SV are considered as notably attractive cryptos to invest in right now due to their strong fundamentals and/or positive technical analysis. These cryptos have been demonstrating substantial recovery from previous falls and therefore have garnered interest among traders.
Particularly, Toncoin has experienced a 4.06% gain just today after finding a footing at the Fib 0.5 retracement level of $1.6171. Furthermore, its RSI (Relative Strength Index) has seen a rise from 50.75 to 64.84, indicating progressive buying pressure which signifies a bullish trend. This performance has marked an uptick in the market cap as well as volume, making it one of the promising cryptos to consider.
While Wall Street Memes token, with a successful presale raising over $25 million, is set to make its debut on exchanges soon, the anticipation is high among investors who see potential for its bull run.
Crypto market is no stranger to volatility. The imminent liquidation of FTX can very well be a trigger point for another wave of turbulence. With every step adding to an already existing pile of complexities, the crypto market demands constant attentiveness from its player. It is also wise to consider safeguarding profits by taking partial profits at targeted resistance levels to endure further momentum. Remember, the high-risk nature of cryptocurrency investments calls for cautious decisions.
Source: Cryptonews
