Will FTX Crash the Crypto Market Again and Push Bitcoin to $20k?

  • FTX is set to liquidate $3.4 billion in crypto, causing fears of a possible sharp decline in asset prices. 
  • However, the court has suggested the exchange liquidate a maximum of $100 million weekly. 

In 2022, Sam Bankman-Fried’s FTX collapsed, shaking the foundation of the crypto ecosystem to send almost all the leading assets plummeting. Almost all of these assets have not yet recovered from the shock as the event also triggered stringent enforcement actions against crypto companies. The co-founder of the empire was accused of stealing a huge sum of money from users to pay debts at his other company, Alameda Research. Presently, FTX could trigger another pullback after it requested approval from the court to liquidate its $3.4 billion in crypto. With the green light expected to be given on September 13, investors are very concerned that there could be another sharp decline in asset prices. However, the court has suggested that the exchange liquidate a maximum of $100 million in cryptos weekly. This is to reduce the impact and make the bearish effect gradual. 

FTX held several cryptos as of January including $67 million in Aptos (APT), $42 million in Dogecoin (DOGE), $685 million in Solana (SOL), etc. In response to this, analysts have carefully assessed the potential impact on these assets after the liquidation. 

Price Analysis of Assets Held by FTX

Solana is currently trading at $6.49 after falling by 6 percent in the last seven days. Since the beginning of the year, the ascending support line of the asset moved up alongside the price to hit a new yearly high of $32.13 in July. However, the asset has been on a constant fall since then. Its price is expected to continue its downward trend since its daily Relative Strength Index (RSI) shows bearishness. It is important to note that RSI indicates an overbought or oversold condition in the market. When it remains above 50, it indicates that bulls are in control. Reading below 50 shows that there is a potential bearish condition. According to the analyst, Solana could fall to $14 if it breaks the current support level. However, it could surge to $27 when bulls resist. 

Dogecoin has since June 10 recorded a price increase in addition to an ascending support line. On August 15, the price took a U-turn to hit as low as $0.055 on August 17. The asset later took a rebound to trade at $0.66 before falling to $0.60. Its RSI is also showing a bearish condition similar to SOL. Doge could fall by 12 percent to hit a yearly low of $0.053. However, it can go as high as $0.070 if it regains momentum. As of press time, Doge was trading at $0.061952. 

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Aptos (Apt) has since its all-time high of $20.40 in January recorded a constant fall. This happened until it hit $5.40 on June 10. According to the analysts, APT can fall to a yearly low at $3, which is a 35 percent fall. If bulls resist, the price could surge by 20 percent to trade at $5.80. 

In the last 24 hours, most of the leading cryptos are in greens. 

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