FTT Token May Ignite A Death Rally Soon For Major Altcoins And Stablecoins! Here’s Whats Happening

It looks like the crypto market is going to see another downer after recovering from the lingering effect of Terra’s historic LUNA crash in May.

A leaked report from the trading platform founded by Sam Bankman Fried (SBF), Alameda Research, claimed that the firm’s billions of dollars ($3.2B) worth of assets are locked in FTX’s native FTT token, which can lead to a crypto crash in the short term.

This incident has forced FTX Binance Rival to sell his FTT holdings as CEO Changpeng Zhao will sell Binance’s FTT holdings worth $2.1 billion to avoid any losses that occurred during the LUNA crash.

In addition, the massive sale of FTT tokens in exchange for stablecoins and altcoins can lead to a drop in the prices of cryptocurrencies, including SRM, LDO, BTC, ETH, RNDR, BIT, GOG, UNI, SUSHI, AVAX.

Altcoins Bloodbath Trailer With FTT Begins!

The FTT token selloff will not only create selling pressure and a price drop for FTT on the chart, but it will also take several altcoins and stablecoins to the lower levels.

According to on-chain data provider Lookonchain, Alameda owns a significant number of stablecoins and altcoins, as the trading platform constantly exchanges FTT tokens.

According to them, these massive movements of cryptocurrencies will eventually lead to a drop in prices, including significant assets such as Bitcoin and Ethereum.

Additionally, the analyst firm noted that Alameda is conducting large SRM, LDO, RNDR, BIT, GOG, UNI, SUSHI, and AVAX transactions to the FTX exchange, noting that Alameda Research transferred 478,999 SHUSHI and 636,538 LDO ($1 million) to its matrix. FTX exchange company.

Additionally, the FTX exchange is also offloading other tokens including CHZ, LOOM, SHIB, LINK, and DYDX as the crypto exchange giant is directly depositing its holdings to Binance.

Where is FTT headed now?

Looking at the FTT daily price chart, the token is almost 20% below its recent high as CZ creeps up. dump the FTT tokens by selling $500 million worth of FTT tokens.

If CZ continues to liquidate more FTT tokens, it will force Alameda’s FTT-backed loans into a massive liquidation, and the FTX exchange will shut down its huge FTT holdings to prevent any future losses to stablecoins and altcoins, creating panic. . and the dump situation for the entire crypto market, leading to a death spiral.

According to CoinMarketCap, Solana, ChainLink, and BNB prices have already started their downtrend due to the high selloff caused by the FTT selloff. The FTT token is currently trading at $22.6 after making a downside breakout at the 50-EMA trend line of $24.3.

Since then, the FTT token is falling sharply on the price chart, with the RSI-14 level dipping to 40. The MACD line is also retracing lower following negative market sentiment.

In conclusion, growing FTT token sell-off risks may pose a barrier to the next crypto bull run that may take place in early 2023, as further sell-off of major assets will extend the downtrend timeframe before a uptrend. to return.

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