The cryptocurrency industry was rocked by the latest news that Binance was looking to sell its FTT stake for unknown reasons. The news shocked most assets, including Ethereum. However, some cryptocurrencies still display solid performance. FTT Drama As we mentioned in our previous article, Binance’s plan to sell millions of FTT tokens on the market caused panic among FTX investors. The exchange had no choice but to withdraw the funds. Your reserve wallets to handle an increase in withdrawals. FTX has seen around $500 million in outflows since Binance announced, according to on-chain data. The FTT token was also hit hard, falling more than 16%. While the brief spike lower looked like a sign of recovery, investors quickly pushed it lower.
As the data shows, the most likely source of buying support came directly from FTX and had nothing to do with the natural movement of money in the market. FTX remains a solvent company capable of handling any debt at this point. Point without considering the funds from Alameda, which will undoubtedly be used to solve the exchange platform’s problems. However, the surge in outflows benefits Binance, which will likely become a new home for these funds. They are showing more than strength in the market as their value hits new highs. In the last seven days, LTC has surged 35% and broke the local resistance level reflected in the 200-day moving average.
Historically, LTC has shown solid performance despite the market correction. Unfortunately, all indications are that Litecoin will likely remain flat around the current price, as declining volume and the oversold RSI point to a penalty. However, the short-term cooldown could trigger another rally in LTC and put it in a reversal state. Ethereum is trying to catch up with FTT.
The second largest cryptocurrency on the market has lost over 3.5% of its value since yesterday and is now forming a revolving lower candlestick pattern. As FTX remains one of the largest derivatives trading platforms, Ethereum could take a hit amid the FTT crisis. However, the stabilization of the overall situation should trigger a recovery rally fueled by the recovery of Bitcoin and the cryptocurrency in the market in general, thanks to the easing of sentiment around the US.
Monetary policy. In the medium term, Ether has shown solid performance, with the price of cryptocurrency Buterin gaining more than 16% of its value over the past few weeks, hinting at a possible recovery after a dismal September and October.