Crypto Market Review, November 8

The cryptocurrency market returns to red after the sell out caused by Binance’s desire to sell its FTT holdings. The announcement caused a surge of withdrawals on FTX and general outflows from the digital assets industry. However, investors should not be in a panic.

Memetoken still has some hope

Despite the most recent plunge, Shiba Inu still has some bounce potential. In the last 24 hours, the panic on the market caused a plunge of SHIB token to October’s level of $0.00001056. The return to this price level is an unfortunate event for a token that reached the early stage of a potential reversal.

The return and drop below the 50-day moving average is, unfortunately, a negative sign for Shiba Inu, and it most likely means that the recovery rally is canceled and the token will continue moving in the $0.00000950-$0.00001500 price range.

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However, the correction on the market does not bring negativity only. By returning to the lower border of the price range, Shiba Inu investors will once again be able to accumulate the token ahead of a significant recovery rally.

Solana is in catastrophic state

While the majority of assets on the cryptocurrency market are going through a tough period, Solana will most likely be the biggest loser today as the coin lost more than 15% of its value in a certain period, becoming the worst-performing cryptocurrency of the day.

The drop to $24 brings it to the price level we saw back in 2021, putting a one-year return for Solana investors at almost 0% despite the massive rally that lasted until November 2021, when SOl was trading at $261 with a 500% profit for around 100 days.

Technical issues, the lack of funding and questionable usefulness of Solana compared to Ethereum are the three main reasons why the coin has been struggling so much on the market, after euphoria and endless investments in the DeFi and NFT industries disappeared.

The short-term bounce we saw recently did not transform into anything that would push Solana to new highs, which is why the price action we are seeing today is just a logical continuation of the prolonged downtrend Solana entered back in 2021, rather than a reaction to the most recent events.

Ethereum struggles

Unfortunately, not only have small cryptocurrencies become targets of the most recent plunge on the market. The second biggest cryptocurrency out there has lost more than 8% of its value in the last 24 hours, returning to a price level most market participants never expected to see. 

The reason behind the plunge and suppressed movement on the market is enormous selling pressure coming from FTX, which has been actively selling their holdings to keep the exchange solvent. Reportedly, more than 300,000 ETH have been transferred from FTX wallets recently.

At press time, Ethereum is trading at $1,481, right at the local support level of the 50-day moving average.