According to analyst Ali Martinez, popular altcoin Terra (LUNA), Cosmos (ATOM) and Phantom (FTM) may be subject to steeper corrections. Cryptocoin. com, we have compiled the details for you, let’s examine the subject together…
- A sudden increase in profit taking has brought the cryptocurrency market to a very important point.
- For Terra (LUNA), Cosmos (ATOM) and Phantom (FTM), this could even mean a retreat into the bearish zone.
- As these altcoins maintain weak support, there may be more selling pressure, according to Ali Martinez.
In the last 24 hours, approximately $ 900 million worth of long and short positions have been liquidated in the cryptocurrency market. Although the sudden correction significantly impacted Bitcoin and Ethereum, at most a few altcoins suffered. Terra (LUNA), Cosmos (ATOM) and Phantom (FTM) are among the hardest hit with more downside potential.
Ali Martinez gave the targets for altcoin project LUNA!
LUNA has gone through a consolidation period of about two months, forming a symmetrical triangle on its daily chart. However, on November 4, LUNA broke away from it, signaling that it was committed to an uptrend. The rising price movement was supported by the news that Grayscale is looking to add this altcoin to its range of investment products. Although the consolidation pattern showed LUNA heading towards its all-time high of $75, prices failed to break through the psychological resistance barrier of $55. The rejection resulted in a significant increase in profit making, which now seems to invalidate the optimistic thesis.
Terra broke below the $48 support and seems to be losing the 50-day moving average at $43 as support. Further selling pressure could be disastrous for the bulls as it could result in a 52% correction towards the 200-day moving average at $23. To avoid such a pessimistic outlook, LUNA must rally from current price levels and regain $48 as support. Just above this hurdle, a daily candlestick could signal a continuation of the uptrend towards $75.
Market analyst: ATOM breaks below support
ATOM also continues its downtrend, losing all major support levels below it. The smart contract token broke the 50-day moving average on November 10 and recently the 100-day moving average. According to Ali Martinez, ATOM will likely print a one-day candlestick below $31 as sell orders continue to pile up. This type of market behavior will serve as confirmation for lower prices on the horizon, according to Ali Martinez.
If this happens, nothing will stop ATOM from falling to the 200-day moving average, or $23, according to Ali Martinez. Although the odds are in favor of the bears, retrieving $31 as support could slow ATOM’s downtrend. More importantly, ATOM will need to close above the 50-day moving average at $35 to retest its all-time high at around $45.
Analyst: These levels are expected for Phantom!
It looks like Phantom has dropped one more foot after breaking the consolidation pattern that has kept its price in check since September 13. The FTM token of the Proof-of-Stake chain has crossed an important support barrier represented by the lower bound of a parallel channel. Breaking such a strong fulcrum predicted a 40% correction towards the 100-day moving average at $1.62.
According to Ali Martinez, The Phantom has pulled back more than 27% so far and seems on track to meet its bearish target. A daily candlestick near the 50-day moving average below $2.3 will confirm the gloomy outlook. However, if the Phantom manages to stay above this support level, it could rally before reaching the downside target, according to Ali Martinez.