- 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.
- Additional promoting stress could also be seemingly as these altcoins maintain on weak help.
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Practically $900 million value of lengthy and quick positions had been liquidated throughout the cryptocurrency market in the previous 24 hours. Though the sudden correction considerably impacted Bitcoin and Ethereum, just a few altcoins suffered probably the most. Terra (LUNA), Cosmos (ATOM), and Fantom (FTM) rank among the many most affected with additional draw back potential.
LUNA Phases a Fakeout
LUNA underwent an almost two-month-long consolidation interval that developed a symmetrical triangle on its every day chart. However on Nov. 4, LUNA broke out of it, signaling that it was certain for a bullish impulse. The upward value motion was fueled by information that Grayscale was exploring including this altcoin to its vary of funding merchandise.
Though the consolidation sample prompt 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 help degree and seems to be dropping the 50-day shifting common at $43 as help.
Additional promoting stress might be catastrophic for the bulls as it could end result in a 52% correction in the direction of the 200-day shifting common at $23.
LUNA should rebound from the present value ranges and regain $48 as help to keep away from such a pessimistic outlook. Solely a every day candlestick shut above this hurdle would sign the continuation of the uptrend in the direction of $75.
ATOM Breaks Under Help
ATOM additionally continues to pattern decrease, dropping all important help ranges beneath it.
The good contracts token breached the 50-day shifting common on Nov. 10 and breached the 100-day shifting common just lately. As promote orders proceed to pile up, ATOM would seemingly print a every day candlestick shut beneath $31. Such market habits would function affirmation for decrease costs on the horizon.
If this had been to occur, nothing would forestall ATOM from dropping in the direction of the 200-day shifting common at $23.
Whereas the chances seem to favor the bears, regaining $31 as help might decelerate ATOM’s downtrend. Extra importantly, ATOM would want to shut above the 50-day shifting 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 value since Sep. 13.
The Proof-of-Stake chain’s FTM token breached a major help 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 shifting common at $1.62. Fantom has retraced by greater than 27% to date and seems to be on monitor to satisfy the bearish goal.
A every day candlestick shut beneath the 50-day shifting common at $2.3 will validate the pessimistic outlook. But when Fantom manages to remain above this help degree, it could rebound earlier than assembly the draw back goal.
Disclosure: On the time of writing, the writer of this characteristic owned BTC and ETH.
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