Fantom (FTM) Crypto, Terra LUNA Showing Demand Despite the Decline in the Market
Skerdian Meta • 2 min read
The decline in the crypto market accelerates as Bitcoin (BTC) falls to $33,000 while Ethereum (ETH) heads toward $2,000. The crypto-related company shares ks such as Coinbase or Robinhood also have lost considerable value. This goes together with the decline in stock markets and particularly tech companies.
The fact that central banks are turning hawkish as inflation increases and the global economy holds at an impressive pace, is weighing on all these markets, which continue to decline. Although certain assets such as Fantom and Terra LUNA are holding much better than most of the crypto market, which indicates buying interest and a desire to turn bullish once the decline in the market ends.
FTM Buying Interest at the Support Below $2
Fantom is a very interesting layer-1 blockchain, offering some juicy yields from 20% to 50%. The DeFi (decentralized finance) sector in the crypto industry is growing fast and Fantom is progressing even faster, as it becomes the third largest blockchain by TVL (total value locked). It has recently partnered with the e-commerce platform Shopping.io, to enable online retailing.
So, the demand remains high for Fanton, which was on a strong bullish trend until late October, with smaller moving averages acting as support. In November we saw a strong pullback as the sentiment turned negative in the market, but the 200 daily SMA (purple) held as support and buyers tried the all-time highs again. Last week we saw another pullback lower, but that’s much smaller than in the rest of the crypto market and the support zone below $2 is still holding, while major cryptos continue to decline. So, this might be a good place to look to buy FTM/USD if the support holds. Otherwise, the 200 SMA and the next support at $1 lay below.
The 100 Daily SMA Holds for Terra LUNA
Can LUNA coin turn bullish from here?
The Terra ecosystem is another major player in the DeFi world, which is also progressing well as a network. It has set apart around $140 million to enhance the interchain deployment of its LUNA and UST coins in DeFi projects on Ethereum, Solana etc. Besides that, the Terra Foundation has formed the Luna Foundation Guard (LFG) to safeguard the stability of its stablecoin UST, as well as support the Terra ecosystem.
The LUNA coin has surely been more stable than other cryptocurrencies during these bearish times. LUNA/USD retreated from record highs above $100, but the 100 SMA is acting as support on the daily chart. We saw a bounce yesterday after the hammer candlestick on Saturday, but today the bearish momentum has picked up again in the crypto market. Although the 100 SMA still holds, so if the crypto market stops declining we might see a bullish reversal here. We have to keep an eye on the broader market and if we start getting some bullish signals, these two cryptocurrencies will be the first to turn bullish.