Despite an initial sell-off, leading cryptocurrencies continued to trade above New York lows in Tuesday's Asian session as investors braced for additional turbulence as collapsed crypto exchange FTX awaits regulatory approval later this week to liquidate $3.4 billion in crypto assets.

If approved, FTX would be able to sell up to $100 million in tokens per week, with the cap increasing to $200 million on an individual token basis. "The incoming FTX liquidation indicates that the crypto market may see another US$3.4 billion in crypto-to-fiat off-ramping — a potential liquidity gap that may be difficult to fill in the absence of Signature Bank, Silicon Valley Bank, and Silvergate Bank, which were responsible for at least 50% of all fiat-to-crypto on-ramping over the last few years," Markus Thielen, head of research and strategy at digital asset service platform Matrixport, said in a report

The Outflows Continue

The probable sell-off coincides with statistics from alternative asset management CoinShares showing a $59 million outflow from digital asset investments in the week ending September 8, marking the fourth consecutive month of withdrawals.

Despite the bearish market mood, Bitcoin (BTC), Ethereum (ETH), and Ripple's XRP (XRP) all staged remarkable recoveries near crucial support levels on Monday. We've identified key trading levels to keep an eye on in the chart below.

Bitcoin

Early this week, the King's price fell below a well watched falling triangle pattern. Buyers, on the other hand, have moved in near critical support at the psychological $25,000 level. Further gains may see a test of resistance at $26,800, where price will meet resistance from a prior trading range's top trendline and the 200 SMA. Alternatively, failure to hold $25K may cause a drop to new lows near the $21,540 support level.

BTC 914.png

Ethereum

Despite not hitting a critical level of support like Bitcoin, Ethereum's price staged an amazing comeback following a sharp sell-off below a descending triangle. Importantly, the RSI recovered from very oversold levels to rise over the critical 30 mark. Bulls could challenge overhead resistance at $1,695 if the current short-term upward trend continues. In contrast, failing to retake the triangle's bottom trendline might precipitate a drop to $1,500 support.

ETH 914.png

XRP

XRP has also broken down from a descending triangle pattern. However, important support is located at Monday's low, enhancing prospects for an upside reversal from these levels. Furthermore, like Ethereum, the RSI has battled its way back above oversold area, indicating a shift in short-term momentum. Following-through purchasing could result in a test of key resistance near $0.54. A collapse below support at $0.46, on the other hand, might trigger a drop to the next level of key support at $0.4175.

XRP 914.png

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