Alternative cryptocurrencies face potential decline as FTX plans to sell $3.4 billion of digital assets
Crypto services provider Matrixport has warned that altcoin prices may be negatively impacted by FTX’s decision to offload its $3.4 billion stash of digital assets. According to Matrixport, altcoins could face significant declines for the remainder of the year. The firm specifically highlighted the price outlook for Ethereum (ETH) and Solana (SOL).
Ethereum and Solana price predictions
Matrixport noted that SOL has already broken down from the $19 level with increased trading volume, which it considers concerning. This breakdown could potentially lead to further declines, with support levels at $15 and $10. Similarly, Matrixport believes that ETH could drop further due to disappointing revenue growth. If the price of ETH falls below $1,500, there is a possibility that it could decline to $1,000.
Matrixport’s perspective on altcoins
Markus Thielen, Matrixport’s head of research and strategy, expressed skepticism about altcoins from previous bull markets. He believes that these altcoins have poor tokenomics and may not recover. Instead, Thielen suggests focusing on bitcoin as the most sensible investment option while waiting for new themes to emerge for the next generation of altcoins.
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