- A surprising spike in profit-taking has build the cryptocurrency market at a pivotal level.
- For Terra (LUNA), Cosmos (ATOM), and Fantom (FTM), it could per chance perhaps also even mean a retreat into bearish territory.
- Further promoting strain will be likely as these altcoins shield on feeble toughen.
Nearly $900 million worth of long and brief positions own been liquidated across the cryptocurrency market within the past 24 hours. Even though the surprising correction deal impacted Bitcoin and Ethereum, just a few altcoins suffered the most. Terra (LUNA), Cosmos (ATOM), and Fantom (FTM) substandard among the most affected with further downside likely.
LUNA Stages a Fakeout
LUNA underwent a nearly two-month-long consolidation interval that developed a symmetrical triangle on its on each day basis chart. Nevertheless on Nov. 4, LUNA broke out of it, signaling that it became once certain for a bullish impulse. The upward designate action became once fueled by data that Grayscale became once exploring in conjunction with this altcoin to its differ of investment merchandise.
Even though the consolidation sample steered that LUNA became once heading to a fresh all-time high of $75, costs didn’t beat the $55 psychological resistance barrier.
The rejection resulted in a wide spike in profit-taking that now appears to own invalidated the optimistic thesis. Terra has dropped below the $48 toughen level and appears to be losing the 50-day sharp moderate at $43 as toughen.
Further promoting strain will likely be catastrophic for the bulls as it could per chance perhaps also consequence in a 52% correction in direction of the 200-day sharp moderate at $23.
LUNA must rebound from the most modern designate stages and win $48 as toughen to manual decided of the kind of pessimistic outlook. Most effective a on each day basis candlestick shut above this hurdle would model the continuation of the uptrend in direction of $75.
ATOM Breaks Below Toughen
ATOM also continues to fashion decrease, losing all essential toughen stages beneath it.
The natty contracts token breached the 50-day sharp moderate on Nov. 10 and breached the 100-day sharp moderate no longer too long within the past. As sell orders continue to pile up, ATOM would likely print a on each day basis candlestick shut below $31. Such market behavior would serve as confirmation for decrease costs on the horizon.
If this own been to occur, nothing would end ATOM from dropping in direction of the 200-day sharp moderate at $23.
Whereas the odds seem to settle on the bears, regaining $31 as toughen can also slow down ATOM’s downtrend. Extra importantly, ATOM would must shut above the 50-day sharp moderate at $35 to restest the all-time high at nearly $45.
Fantom Breaks Down
Fantom appears to own but any other leg down after breaking by a consolidation sample that had been containing its designate since Sep. 13.
The Proof-of-Stake chain’s FTM token breached a wide toughen barrier represented by the decrease boundary of a parallel channel. Slicing by the kind of sturdy foothold projected a 40% correction in direction of the 100-day sharp moderate at $1.62. Fantom has retraced by bigger than 27% to this level and appears to be heading within the correct direction to meet the bearish design.
A on each day basis candlestick shut below the 50-day sharp moderate at $2.3 will validate the pessimistic outlook. Nevertheless if Fantom manages to remain above this toughen level, it could per chance perhaps also rebound earlier than meeting the downside design.