Crypto Market Review, November 8

The cryptocurrency market returns to the red after the sell-off caused by Binance’s desire to sell its FTT holdings. The announcement caused a wave of withdrawals on FTX and general outflows from the digital asset industry. However, investors should not panic.

The memetoken still has some hope

Despite the recent plunge, the Shiba Inu still has some bouncing potential. In the last 24 hours, the panic in the market caused the SHIB token to plunge to the October level of $0.00001056. The return to this price level is an unfortunate event for a token that reached an early stage of a potential reversal.

Unfortunately, the return and fall below the 50-day moving average is a negative sign for Shiba Inu, and it most likely means that the mining rally has been canceled and the token will continue to move in the $0.00000950-$0.00001500 price range.

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However, the correction in the market does not only bring negativity. By returning to the lower end of the price range, Shiba Inu investors will once again be able to accumulate the token ahead of a significant recovery rally.

Solana is in catastrophic condition

While the majority of assets in the cryptocurrency market are going through a rough period, Solana is most likely to be the biggest loser today as the coin lost more than 15% of its value in a certain period, becoming the worst performing cryptocurrency of the day.

The drop to $24 brings it to the price level we saw back in 2021, and puts a one-year return for Solana investors at nearly 0% despite the massive rally that lasted until November 2021, when SOl traded at $261 with a 500% gain in around 100 days .

Technical issues, the lack of funding and questionable utility of Solana compared to Ethereum are the three main reasons why the coin has struggled so much in the market, after the euphoria and endless investments in the DeFi and NFT industry dissipated.

The short-term rally we saw recently didn’t transform into something that would push Solana to new highs, which is why the price action we’re seeing today is just a logical continuation of the long-term downtrend Solana retraced in 2021, rather than a reaction to the latest events.

Ethereum is struggling

Unfortunately, not only small cryptocurrencies have been the target of the latest plunge in the market. The second largest cryptocurrency out there has lost more than 8% of its value in the last 24 hours, returning to a price level most market participants never expected to see.

The reason behind the plunge and suppressed movement on the market is enormous selling pressure from FTX, which has actively sold its holdings to keep the exchange solvent. Reportedly, more than 300,000 ETH have been transferred from FTX wallets recently.

At press time, Ethereum is trading at $1,481, right at the local support level of the 50-day moving average.