The fallout of FTX has not been just the inspiration behind the clickbait titles in newspapers. It has generated profound impacts on the crypto market. Crypto traders now have to deal with the uncertainty in price actions, which means that they might face up to potential failures.
Yet, the things we always look at are the core problems and the silver linings in the mess. Don’t get us wrong the facts that we point out are not for toxic positiveness. We still see the challenges, yet the situation is not a dead-end. Instead of drowning our spirits with pessimism, let’s find the bright sides to liven up the mood.
Moreover, we share some great references of altcoins for crypto traders and investors to diversify trading portfolios, instead of heavily depending on bitcoin.
Be Grateful that Bitcoin still Works
Through all the crises in the crypto industry, both Bitcoin and Bitcoiners are still working. There have been many discussions around self-custody and new useful tools in the process. Also, the price of bitcoin is maintained at $16,000 while public bitcoin minders are struggling. The price level that bitcoin is steady around can be seen as a remarkable highlight.
Why is that?
When things are awry, you can see whether crypto has the real intrinsic power, to stand against the storm. The stability in Bitcoin prices calms investors and enthusiasts down with the solid belief in its rally.
The Failure of FTX is not all about DeFi’s Fault
DeFi (decentralized finance) seems now to be the double-edged sword in the crypto market. It is a fact that DeFi enables traders and investors to see the whole transaction with transparency. Yet, it can be easily blamed whenever problems happen as there are no authorities that take responsibility.
However, DeFi is not the reason for the FTX fiasco that has brought the nightmare to daytime for many traders. It is the case where the trust in third parties and the trend of famous personality cults.
What does it imply? It means the protocols didn’t break as FTX collapsed. When the system crypto investors have believed in so far is still fine, the ‘down mood’ now is just a matter of time. If you have strong enough financial backups, it might be a good idea to shift from short-term gains into long-term gains.
The Fallout of FTX Amid a Bear Market
Before the FTX collapse, the crypto market was already in a downtrend. So, when the breakout of FTX took place, crypto traders expect new lows. Why is it good news? As the small crypto market can’t have big tendrils. Or, simply put, the contagion effect cannot reach and break down the non-crypto economy.
Positive Changes in Regulations in the Crypto Industry
The FTX insolvency is now among the most notorious dramas in the crypto market. Yet, instead of gossiping in the dramas of Who’s Who and digging into their personal life, there have been many alerts and discussions about the regulations and changes.
Specifically, customers now can get proof of reserves to be sure that the exchanges are in fact holding their funds. Tough times make things and people stronger as they should learn their lessons. Hence, there will be more changes in the crypto market in the near future.
What are Altcoins for Your Consideration amid the Crypto Crisis?
Buyers of Dogecoin (DOGE) regrouped and pushed the price to more than the 38.2% Fibonacci retracement level of $0.10 on November 27. If the price is not below $0.09, the DOGE/USDT pair can obtain momentum and rally toward the 61.8% Fibonacci retracement level of $0.12. If this level is enhanced, the pair may be on the uptrend.
Meanwhile, if the price decreases from the current level, it indicates that bears continue to consider the rallies as a selling opportunity. If so, the pair of DOGE/USDT might decline to $0.09. Otherwise, the 50-day SMA of $0.08 could be challenged.
Buyers have pushed the price beyond the range, which might kick off the uptrends. The strong rally causes the RSI to go into deeply overbought levels, indicating a minor correction or consolidation in the near term.
When the price drops from 38.2% Fibonacci retracement of $0.1 but rebounds off the breakout level, it is a signal of positive sentiment and traders buying on dips.
The breakout of LTC goes beyond the overhead resistance at $75, indicating a potential trend change. If the bulls succeed in propelling the price above the overhead resistance at $84, an uptrend might take place. The rising 20-day EMA of $67 and the RSI near the overbought zone show the path of least resistance to the upside. Hence, the LTC/USDT pair might reach the target objective of $104.
On the other hand, if the price is lower than $84, the pair could slide to the $75 support zone. And if the zone breaks down, the pair could move to the 20-day EMA. The bears have to pull the price below this support to get the aggressive bulls.
Chainlink has been bouncing back and forth between $5.5 and $9.5 for the past many weeks. The strong rebound off the support level at $5.5 on November 21 indicates that the bulls aggressively buy the dips to this level.
The 20-day EMA of $6.74 increases and the RSI has gone into the positive territory, suggesting a minor advantage to the bulls. If the price maintains above the 50-day SMA of $7.15, a rally to $8.5, and then to $9.5, will possibly happen.
Conversely, if the price goes lower than the 20-day EMA, it will indicate that bears are active at higher levels. The pair of LINK/USDT pair could then again decrease to the support at $5.5 and consolidate near it for a few more days.
ApeCoin has had a consolidated price range between $3 and $7.8 for the past several months. The bears try to decrease the price below the support zone yet could not maintain the lower levels. It indicates strong demand is at lower levels.
The consistent buying pushed the price higher than the 20-day EMA of $3.47 on November 26, suggesting that the bulls are on a comeback. Minor resistance at the 50-day SMA of $4.06 happened, yet if the bulls cleared the obstacle, the APE/USDT pair could grow to reach the downtrend line.
What do you think about the FTX case and its effects on the crypto market? Have you got any plans for your trades amid the crypto crisis? Do you think the altcoins above are potential for your profits? Tell us in the comments below!