Amidst FTX Collapse, Traders Should Stay Away From These Altcoins
The collapse of one of the top cryptocurrency exchanges by daily traded volume, FTX, has exposed a significant weakness in the industry. FTX’s native token has dumped over 90 percent of its entire value in the past 72 hours.
Although major global investors led by Temasek, a billion-dollar investment company headquartered in Singapore, and Justin Sun through the Tron Foundation have shown interest in FTX assets, a list of altcoins has dumped almost as FTT.
On the top list of altcoins that crypto trades should be wary of is Solana (SOL), which has dumped over 54 percent in the past seven days. According to the latest crypto price oracles, SOL has dropped approximately 24 percent in the last 24 hours to exchange at around $13.99 at reporting time.
Solana’s fast success after the 2020 launch has become its worst enemy during the ongoing bear market. While the asset may have found a temporary support level, anything beyond current bleeding will be a bloodbath for the SOL ecosystem.
From a technical standpoint, should the bulls lack the fuel to pump from the current levels, SOL will be set to trade sub $5 in the coming weeks. As such, crypto traders should approach the Solana market with needed care. Moreover, who expected FTX cryptocurrency exchange to have liquidity issues after Sam Bankman-Fried bragged of the company’s stable balance sheet.
More Altcoins to Watch Amidst FTT Crash
The altcoin industry generally experiences more volatility than Bitcoin during both bear and bull markets. Furthermore, it is a market principle that low-cap projects record more gains or losses than large-cap projects during high volatility. As Bitcoin price trends downwards, most altcoins are expected to follow suit in the coming weeks.
Identifying altcoin projects that may dump further in the coming days is crucial for traders seeking high volatility. Additionally, the information is critical to crypto hodlers seeking to take refuge before more capitulation occurs.
Aptos (APT) is one of the altcoin projects that has dumped hard, approximately 43 percent in the past two weeks. According to our latest crypto market data, APT token has continued to drop in the past week despite the project’s strong backing.
Huobi’s (HT) is another token feared to be headed on the same path as FTX. The HT token has dumped approximately 7.9 per cent in the past 24 hours to trade around $6.04. Although HT token has gained 16 percent in the past 30 days, the asset is trading down over 43 percent in the past year.
As a result, crypto traders are advised to keep their digital assets away from exchanges amid FTX collapse.
Take your funds off @HuobiGlobal Too many projects saying they refuse to give their deposits of 6-7 figures back!Great suspicions are that it is insolvent @SBF_FTX wasn’t just talking about FTX he was probably talking as well about other CEXs— Coach K (30% Crypto, 70% USDC) (@Coachkcrypto) November 10, 2022