Fantom, Terra, Cosmos Among Hardest Hit in Market Dip

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 point.
  • For Terra (LUNA), Cosmos (ATOM), and Fantom (FTM), it may even mean a retreat into bearish territory.
  • Further selling pressure may be likely as these altcoins hold on weak support.
  • Share this article

    Nearly $900 million worth of long and short positions were liquidated across the cryptocurrency market in the past 24 hours. Although the sudden correction significantly impacted Bitcoin and Ethereum, a few altcoins suffered the most. Terra (LUNA), Cosmos (ATOM), and Fantom (FTM) rank among the most affected with further downside potential. 

    LUNA Stages a Fakeout 

    LUNA underwent a nearly two-month-long consolidation period that developed a symmetrical triangle on its daily chart. But on Nov. 4, LUNA broke out of it, signaling that it was bound for a bullish impulse. The upward price action was fueled by news that Grayscale was exploring adding this altcoin to its range of investment products. 

    Although the consolidation pattern suggested that LUNA was heading to a new all-time high of $75, prices failed to overcome the $55 psychological resistance barrier. 

    The rejection resulted in a significant spike in profit-taking that now appears to have invalidated the optimistic thesis. Terra has dropped below the $48 support level and appears to be losing the 50-day moving average at $43 as support. 

    Further selling pressure could be catastrophic for the bulls as it may result in a 52% correction towards the 200-day moving average at $23.   

    Source: TradingView 

    LUNA must rebound from the current price levels and regain $48 as support to avoid such a pessimistic outlook. Only a daily candlestick close above this hurdle would signal the continuation of the uptrend towards $75. 

    ATOM Breaks Below Support

    ATOM also continues to trend lower, losing all significant support levels underneath it. 

    The smart contracts token breached the 50-day moving average on Nov. 10 and breached the 100-day moving average recently. As sell orders continue to pile up, ATOM would likely print a daily candlestick close below $31. Such market behavior would serve as confirmation for lower prices on the horizon. 

    If this were to happen, nothing would prevent ATOM from dropping towards the 200-day moving average at $23. 

    Source: TradingView

    While the odds appear to favor the bears, regaining $31 as support could slow down ATOM’s downtrend. More importantly, ATOM would need to close above the 50-day moving average at $35 to restest the all-time high at nearly $45. 

    Fantom Breaks Down

    Fantom appears to have another leg down after breaking through a consolidation pattern that had been containing its price since Sep. 13. 

    The Proof-of-Stake chain’s FTM token breached a significant support barrier represented by the lower boundary of a parallel channel. Slicing through such a strong foothold projected a 40% correction towards the 100-day moving average at $1.62. Fantom has retraced by more than 27% so far and appears to be on track to meet the bearish target. 

    Source: TradingView

    A daily candlestick close below the 50-day moving average at $2.3 will validate the pessimistic outlook. But if Fantom manages to stay above this support level, it may rebound before meeting the downside target.

    Disclosure: At the time of writing, the author of this feature owned BTC and ETH.

    This news was brought to you by Phemex, our preferred Derivatives Partner.

    Share this article

    The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Findcryptonews.com makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Findcryptonews.com is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

    You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

    See full terms and conditions.

    Fantom Could Rebound to New All-Time Highs

    Fantom still looks bullish despite the heightened volatility in the cryptocurrency markets. The Layer 1 blockchain’s FTM token has rebounded from crucial support with little to no resistance ahead.  Fantom…

    A Beginner’s Guide to Terra’s DeFi Ecosystem

    Terra is a Layer 1 blockchain protocol that aims to create a thriving payments-focused financial ecosystem offering interoperability with the real-world economy. Its two key ecosystem components are the so-called…

    How SocialGood Is Offering 100% Crypto Cashback on Online Shopping

    In recent years, the rise of Bitcoin and tokenized assets has made the cashback vertical ripe for disruption. Within the cashback market, blockchain-based loyalty networks are rising in popularity among…

    Cosmos Adds Interoperability, Sending ATOM Higher

    Cosmos has expanded interoperability with other blockchains, pushing the price of ATOM through a crucial resistance barrier.   Cosmos Opens the Interoperable Era In a nearly unanimous vote, ATOM token holders…

    Recommended For You

    About the Author: Crypto News

    Leave a Reply

    Your email address will not be published. Required fields are marked *