Closely followed crypto analysts warn that 4 altcoin projects will hit new lows with potential FTX sell-offs. In the latest developments, the US court gave the green light for the stock exchange to liquidate its reserves.
Messari analysts identified 3 altcoins that could bottom with FTX sales
Crypto analytics company Messari predicts that three altcoin projects may lose value as a result of FTX’s upcoming liquidations. Analysts draw attention to FTX and Alameda’s reserves, especially Dogecoin (DOGE), Tron (TRX) and Polygon (MATIC). FTX holds $37 million in Dogecoin, $33 million in Tron, and $22 million in Polygon. Their liquidation may bring instant declines in the charts. According to Messari analysts:
What matters is not the absolute value of the tokens, but the ratio of this amount to the volume in which each asset is actively traded. For example, the $353 million FTX/Alameda holds in BTC accounts for approximately 1% of BTC’s weekly trading volume. This means it can buy out a large portion of the market and the same goes for ETH.
But the situation was a little different for DOGE, TRX and MATIC. These altcoin projects are less liquid and can have a larger impact on the market, with $20-30 million representing 6-12% of FTX’s weekly volumes.
According to the last 24-hour data, DOGE ranks 8th in terms of market capitalization and is currently trading at $0.0613. Meanwhile, TRX, ranked 11th, is trading at $0.0815. Tron price increased by 5% during the day. MATIC is traded at $0.511. The altcoin, which ranks 14th in terms of market value, gained 1.75% in value today.
Famous forecaster warned BNB investors
Famous crypto analyst Bluntz included important predictions about DXY and Binance Coin (BNB) in his current analysis. The analyst reminded again of the Elliott Wave theory, especially on the US Dollar Index (DXY).
Notably, Bluntz said the US dollar could experience a major decline. The analyst states that the uptrend observed in DXY in the fourth quarter of the year is an ABC correction within the framework of the Elliott Wave theory, and this correction is now ending. The altcoin analyst also stated that DXY could drop to 95 levels towards the beginning of 2024.
In his analysis, Bluntz said, “DXY may make a peak soon and experience a big decline. An ABC move is likely coming to an end, correcting the impulsive decline in the fourth quarter of 2022. We will have about a month to overcome these highs. “Everything starts again for the dollar,” he said.
$192 is next for BNB
The analyst also painted a pessimistic picture for BNB Coin (BNB). He noted that BNB could experience a “savage” crash and retest the $205 levels. Bluntz included warnings that BNB may lose its fundamental support at this level. He predicted that the altcoin price could drop to $192.
Bluntz’s predictions are of great importance in terms of their impact on the DXY index, which is closely followed by investors, especially those who turn to risky assets. Analyst predictions show that investors will turn to stocks and altcoin market assets instead of the dollar. This strengthens the signal that DXY may decline soon. cryptokoin.com You can take a look at the accurate predictions of the analyst, which we reported as, in this article.
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