Fantom (FTM) Crypo and Terra LUNA Remain Supported During the Crypto Retreat
The decline in the crypto market has resumed again this week, after stalling during most of December and attempting to turn bullish at the end of 2021. But, the attempt has failed and the sentiment has turned bearish again in the market, with most of the cryptocurrencies suffering some heavy losses. Although, Fanton and Terra LUNA are still showing strength as the declines have been minimal for these two cryptos and they remain supported. This shows that they will resume the bullish trend once the selloff in cryptocurrencies is over.
Fantom Daily Chart Analysis – FTM Not Even Blinking
Fantom made an impressive rally from August until November, as it surged from around $0.20 to $3.47. In November we saw a deep pullback, which took the price to $1.20 during the crash in early December, although the real support comes at $1.30.
We were waiting for FTM/USD to fall to around $1 where we would buy, but the price didn’t get down there and in the last two weeks of December we saw a strong reversal higher in this crypto. In the last two days, FTM climbed above $3 and is holding the gains close to that level, despite the bearish momentum in the crypto market.
Fantom is benefiting from increased interest in Layer 1 blockchains, as the DeFi (decentralized finance) build on this layer keeps increasing fast. The total locked value in the Fantom network has surpassed $6 billion and the DeFi is picking up pace further. The decentralized and open-source layer-1 blockchain is powered by the Lachesis consensus mechanism, which uses a proof-of-stake structure, enabling transactions to be quick, secure and scalable. So, the interest as an Ethereum alternative remains high and judging by the price action, FTM will probably resume the bullish trend as soon as the bearish momentum in the market ends.
Terra Daily Chart Analysis – Buy LUNA at $75 or Wait for $70?
LUNA/USD trying to decide at the previous high around $75
Terra LUNA is another network that is benefiting from the explosion in DeFi, and smart contract applications are helping this network progress further in this direction. Applications such as Anchor and Mirror enable earning yields between 20% and 50% while others like Kujira allow users buy cryptos at a discount price during auctioning times.
This has kept LUNA coin pretty bullish, sending it from around $10 in August to above $100 this week. This has happened despite the bearish momentum in the market during the last two months. Moving averages have done a good job as support indicators during this time and no the price is retreating toward the 50 SMA (yellow), which has acted as support before, but the decline has stalled at early December high around $75. So, the reversal might happen here since this crypto has been showing strength. But we will wait a bit longer to watch the price action and see if this bearish momentum in the market has more room to run.
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