Fantom, Terra, Cosmos Among Hardest Hit in Market Dip

Key Takeaways

  • A sudden spike in profit-taking has put the cryptocurrency market at a pivotal level.
  • For Terra (LUNA), Cosmos (ATOM), and Fantom (FTM), it could even imply a retreat into bearish territory.
  • Further promoting stress could also be seemingly as these altcoins maintain on weak assist.

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Nearly $900 million price of lengthy and quick positions have been liquidated throughout the cryptocurrency market in the previous 24 hours. Although the sudden correction considerably impacted Bitcoin and Ethereum, a couple of altcoins suffered probably the most. Terra (LUNA), Cosmos (ATOM), and Fantom (FTM) rank among the many most affected with additional draw back potential. 

LUNA Stages a Fakeout 

LUNA underwent a virtually two-month-long consolidation interval that developed a symmetrical triangle on its day by day chart. But on Nov. 4, LUNA broke out of it, signaling that it was certain for a bullish impulse. The upward worth motion was fueled by information that Grayscale was exploring including this altcoin to its vary of funding merchandise. 

Although the consolidation sample urged that LUNA was heading to a brand new all-time excessive of $75, costs failed to beat the $55 psychological resistance barrier. 

The rejection resulted in a major spike in profit-taking that now seems to have invalidated the optimistic thesis. Terra has dropped beneath the $48 assist stage and seems to be shedding the 50-day transferring common at $43 as assist. 

Further promoting stress may very well be catastrophic for the bulls as it could end result in a 52% correction in the direction of the 200-day transferring common at $23.   

Source: TradingView 

LUNA should rebound from the present worth ranges and regain $48 as assist to keep away from such a pessimistic outlook. Only a day by day candlestick shut above this hurdle would sign the continuation of the uptrend in the direction of $75. 

ATOM Breaks Below Support

ATOM additionally continues to development decrease, shedding all vital assist ranges beneath it. 

The good contracts token breached the 50-day transferring common on Nov. 10 and breached the 100-day transferring common not too long ago. As promote orders proceed to pile up, ATOM would seemingly print a day by day candlestick shut beneath $31. Such market conduct would function affirmation for decrease costs on the horizon. 

If this have been to occur, nothing would forestall ATOM from dropping in the direction of the 200-day transferring common at $23. 

Cosmos ATOM US dollar price chart
Source: TradingView

While the percentages seem to favor the bears, regaining $31 as assist might decelerate ATOM’s downtrend. More importantly, ATOM would want to shut above the 50-day transferring common at $35 to restest the all-time excessive at almost $45. 

Fantom Breaks Down

Fantom seems to have one other leg down after breaking by way of a consolidation sample that had been containing its worth since Sep. 13. 

The Proof-of-Stake chain’s FTM token breached a major assist barrier represented by the decrease boundary of a parallel channel. Slicing by way of such a robust foothold projected a 40% correction in the direction of the 100-day transferring common at $1.62. Fantom has retraced by greater than 27% to date and seems to be on monitor to satisfy the bearish goal. 

Fantom FTM US dollar price chart
Source: TradingView

A day by day candlestick shut beneath the 50-day transferring common at $2.3 will validate the pessimistic outlook. But if Fantom manages to remain above this assist stage, it could rebound earlier than assembly the draw back goal.

Disclosure: At the time of writing, the creator of this characteristic owned BTC and ETH.

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