The Bankrupt Crypto Exchange FTX Seeks Court Approval for $3.4 Billion Liquidation
The bankrupt crypto exchange FTX is currently seeking court approval to liquidate $3.4 billion in cryptocurrencies. Although the approval is expected to come by September 13, FTX’s court documents indicate that the exchange is likely to offload a maximum of $100 million in digital assets weekly. This gradual approach may mitigate the potential bearish effect on the market that would occur if all assets were liquidated immediately.
FTX currently holds significant amounts of Solana (SOL), Dogecoin (DOGE), and Aptos (APT), among other assets. In this article, we will examine the price movements of these three coins and assess the potential impact of the FTX liquidation.
Solana (SOL) Price Risks Breaking Support Line
The price of SOL has been following an ascending support line since the beginning of the year, reaching a yearly high of $32.13 on July 14. However, the price has since declined and reached a low of $17.36 on Sept. 11. The price’s interaction with the support line will determine its future trend. The bearish RSI suggests a breakdown, which could lead to a 20% drop to the next support at $14. Conversely, a strong bounce could result in a 50% increase to the $27 resistance area.
Dogecoin (DOGE) Returns to Support After Rejection
DOGE has been following an ascending support line since June 10 but broke down from it on August 15. After reaching a low of $0.055, the price bounced and reclaimed the $0.060 support area. Despite being rejected at the $0.066 resistance level, DOGE could potentially increase to the $0.070 resistance level if a bullish reversal occurs.
Aptos (APT) Price Approaches Yearly Low
The price of APT has been declining since its all-time high of $20.40 on January 24. After a bounce in June, the price broke down in September. The bearish daily RSI suggests a lack of a bullish trend reversal. APT could fall by another 35% to reach its yearly low at $3.30 or increase by 20% to validate the $5.80 resistance area if a bullish reversal occurs.
Hot Take: Potential Impact of FTX Liquidation on SOL, DOGE, and APT
The FTX liquidation could have a significant impact on the prices of SOL, DOGE, and APT. While the gradual offloading of assets may lessen the immediate bearish effect on the market, it is still likely to cause some price fluctuations. Traders and investors in these cryptocurrencies should closely monitor the developments surrounding the FTX liquidation and consider the potential risks and opportunities it presents. The price movements of SOL, DOGE, and APT will largely depend on their individual technical indicators and market conditions, but the FTX liquidation adds an additional factor to consider.
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