FTT is Down 21% But This New Coin Could 30x
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FTX's FTT token is down by 19% in the past 24 hours, sinking to $18.28 amid concerns surrounding the liquidity of the exchange's assets. The utility token is also down by 30% in the past week, with Binance announcing over the weekend that it would selling its holdings of the coin, which were worth over $500 million.
Such developments suggest that FTT is in for a rocky ride over the next few weeks and months, with concerns over FTX's financial health possibly becoming a self-fulfilling prophecy. That said, traders looking for profits can still find them elsewhere, with the ongoing Dash 2 Trade presale being arguably one of the most promising investment opportunities in the market right now.
FTT's indicators reinforce the impression that a big selloff is underway. In particular, its relative strength index (purple) has falling below 30, and still appears to be sinking.
Similarly, its 30-day moving average (red) has begun falling further below its 200-day average (blue). Normally, this could signal an approaching rebound, but with speculation over the health of FTX and its owner Alameda Research at fever pitch, the declines may continue.
Last week, leaked documents revealed the state of Alameda's balance sheet, or at least a part of it. While assets were $14.6 billion against liabilities of $8 billion, a closer reading of the sheet revealed that $9.19 billion of the firm's assets (63%) were tied up in altcoins, which aren't liquid enough to sell en masse during difficult periods.
While Alameda CEO Caroline Ellison did reply that the leaked balance sheet covered only a "subset" of the
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