The blame lies with fears over Alameda Research’s financials and its close liquidity ties to the FTX exchange, which are worrying many investors, particularly after decisions by Changpeng Zhao, the CEO of Binance, the largest exchange by trading volume, to withdraw all liquidity held in FTX’s token.
The FTX token (FTT) in the wake of Binance’s decision
Trading volumes for FTT, the native token on the FTX platform, have exploded in recent days. Sales have pushed the average trade back to around $22 per token.
This is a crucial level not only for being the lowest point since the mid-June lows, but also for being a support level that has managed to fend off bear attacks over the past two years.
Analysis of Litecoin (LTC)
Among the few positive signs is Litecoin (LTC), which continues to confirm the bullish trend by exceeding $73 for the first time since last May. Since the mid-October lows, LTC’s performance has exceeded 40%.
Analysis of Bitcoin (BTC)
Despite a mixed weekend, the price of BTC confirms intentions to consolidate the $20,500 threshold.
A few hours after the previous update on Friday, the price of BTC rose above the previous highs of late October, surpassing $21,500 for the first time in over a month.
Only a plunge below $20,000 would erase the good work built up over the past two weeks.
Analysis of Ethereum (ETH)
Over the weekend, the price of ETH made contact with the 200-day moving average several times, confirming the importance of dynamic resistance.
Currently, the level of the MA200 to be broken down coincides with the highs of USD 1,675 reached on Friday.
A break of the dynamic resistance will have to be accompanied by an increase in buying volumes in order not to risk triggering speculation by sellers who would take advantage of bulls’ indecision.
Source: https://en.cryptonomist.ch/2022/11/07/ftx-collapses-binance-announcement/