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- SOL and MATIC are a part of the tokens that FTX might liquidate this week or subsequent.
- Earlier than the liquidation, SOL might proceed to consolidate round $18 except promoting stress seems.
- MATIC, alternatively, might fall beneath $0.50, as indicated by the OBV.
Regardless of enduring torrid durations over the previous few weeks, the crypto market could also be on the verge of one other nosedive. It’s because FTX, the alternate that introduced the market to its knees in 2022, is on the point of liquidate a few of its property, and Solana (SOL) and Polygon (MATIC) are a part of it.
In keeping with crypto podcast Crypto City Corridor, roughly $650 million price of SOL could possibly be bought by FTX quickly. Different property held by the alternate, and is also bought embrace Bitcoin (BTC), Ethereum (ETH), Dogecoin (DOGE), and a number of others.
Whereas SOL was the best holding of FTX, MATIC was the bottom with $39 million. SOL being high of the others might not be shocking. It’s because estranged CEO Sam Bankman-Fried (SBF) by no means hid his admiration for the token when the alternate was nonetheless lively.
Because of this, SOL was one of many cryptocurrencies deeply affected by FTX’s collapse. So, it’s potential that one other situation of the capitulation could possibly be on the playing cards.
SOL Stays Resolute
On the time of writing, SOL exchanged fingers at $18.28, on the again of elevated promoting stress as proven by the 4-hour chart. Since September 8, SOL has tried to rise into the $20 area. However the resistance at $19.58 ensured that it didn’t.
Little did bulls know that sellers had different plans to plunge the value to $18.16. Nevertheless, the Accumulation/Distribution (A/D) line had risen to fifteen.17 million. A rising A/D development alongside a decline in worth suggests a weakening vendor energy. Therefore, this divergence alerts elevated demand, that means SOL’s worth might stabilize.
Nevertheless, it’s possible that the A/D will lose maintain on the upward momentum if FTX lastly liquidates. In consequence, SOL might drop as low s $15.
One other Incoming Dip for MATIC?
MATIC’s market construction was additionally just like SOL. At press time, widespread sell-offs had
triggered MATIC to fall to $0.52. Additionally, earlier makes an attempt to rise to $0.55 have been met with rejection at $0.54 at completely different instances.
Moreover, there was a distinction between the SOL and MATIC circumstances on the charts. Whereas SOL had some type of demand, MATIC didn’t. As per indication from the On Stability Quantity (OBV), MATIC’s quantity stress was reducing.
Usually, a rising OBV might result in increased costs. Due to this fact, the falling OBV in MATIC’s case displays one other potential transfer within the downward path.
In conclusion, MATIC might fall beneath $0.50 no matter FTX’s liquidation interval. It might additionally worsen for the token after the alternate liquidates. However SOL might proceed to consolidate round $18 except FTX sells off the token very quickly.
Disclaimer: The views, opinions, and data shared on this worth prediction are printed in good religion. Readers should do their analysis and due diligence. Any motion taken by the reader is strictly at their very own danger. Coin Version and its associates won’t be accountable for direct or oblique injury or loss