Crypto Market Review, November 11
The market is going through the recovery phase after the disaster caused by the infamous exchange
As the dust from the FTX drama begins to settle, the price performance of most assets normalized and some cryptocurrencies are currently turning around. Cardano and Ethereum are among the best performers in the last 24 hours.
Cardano shows solid performance
In the last 24 hours, Cardano shows a strong reversal of 9% following the stabilization of the cryptocurrency market after the panic among investors turned to common fear. In addition, Cardano avoided the panic selling and is “only” down 14%, which should not be considered too much compared to assets like Solana.
However, the most interesting part of the correction on the ADA is the Relative Strength Index divergence which hints at the upcoming reversal rally and momentum build-up. The signal is usually considered one of the strongest signs of an upcoming reversal from a technical point of view.
In one of his latest tweets, Charles Hoskinson supported the drastic difference between Cardano and assets like FTT and why it will always be financially stable, without causing a devastating situation that the community has absorbed in the last two days.
Advertisements
As we mentioned in our previous market review, the FTX disaster may be far from a logical conclusion, and the latest SOL strike unlock is confirmation of this thesis. However, assets like Cardano should avoid critical peaks in selling pressure or investor panic.
Panic on Ethereum can become fuel
In early November, Ethereum’s price performance was unusually depressed, with the price of the second largest cryptocurrency on the market hitting new lows almost for no reason, while the rest of the market has managed to move up or consolidate.
The existing selling pressure pushed the Relative Strength Index to a four-month low after the price of Ether faced a sharp decline and reached the $1,100 threshold amid the FTT disaster. Right now, Ether is going through a mild recovery, with a price increase of 7.6% in the last 24 hours.
TRX among losers
Regardless of the fact that almost every major asset in the market is going through a recovery on November 10, Tron is not one of them, and the reason is Justin Sun’s desire to help FTX users who are now able to “exit” the exchange at to buy TRX.
Such an unexpected offer caused a price increase of TRX on FTX. The token’s price saw a huge premium against the same trading pair on Binance, causing problems for market makers operating on a number of exchanges. To balance the situation, market makers started selling TRX on available trading platforms, which led to a negative price trend for the asset.
In addition, Tron-backed stablecoin USDD is having trouble maintaining the $1 peg and is currently trading around $0.98. Technically, the stablecoin should have no problem regaining the $1 price and will most likely do so after Tron deploys more capital to maintain the stability of USDD.
