- Terra closes in on $50 while bulls look forward to another price discovery phase.
- Fantom swings to new all-time highs above $2 despite overbought conditions.
Cryptocurrencies across the board appear to be slowing down following the remarkable gains carried since last week Friday. For instance, Bitcoin came close to touching $56,000 but has retreated toward $53,000. As discussed, Ethereum was rejected at $3,600 and could close the day at $3,400 if support at $3,500 fails to hold.
Nonetheless, some tokens continue roaring, unbothered by those taking a breather. Fantom and Terra are some of these cryptocurrencies recording double-digit gains on the day. Shiba Inu has started trimming gains extensively in what could be a perfect example of a pump and dump strategy. The Dogecoin spinoff has been down 26% in the last 24 hours while trading $0.000022.
Terra is digging into the supply zone in the red amid a push to hit another all-time high. Toward the end of last week, the token retreated from highs close to $50 to $40, the support provided by an ascending trend line and reinforced by the 50 Simple Moving Average (SMA).
The correction to $40 made LUNA more attractive to investors, who took advantage of the lower price to enter the market and increase their positions. This explains the immediate recoil with the potential to crack the barrier at $50 and start Terra’s new price discovery mode.
The token’s prevailing uptrend cannot be overemphasized, starting with a recent buy signal from the MACD. Additionally, the RSI confirms the intense bullish grip on the price. Thus, Terra is better positioned to keep the rally going than retreat to the short-term support at $44 and $40.
LUNA/USD Four Chart
Fantom’s roaring continues toward the mood as bulls discover new levels. According to CoinGecko, FTM is up 25% in the last 24 hours, bringing the seven days’ accumulated gains to 80%. Fantom attracted over $220 million in trading volume in the same period while it holds the 36th spot in the market, boasting $5.4 billion in market cap.
The uptrend remains viable based on the general short-term technical picture. Support is, however, required preferably above $2 to ensure that retracements are not very destructive. On the upside, Fantom does not have a defined resistance, and that all addresses are in profit.
FTM/USD 12-Hour Chart
Investors should be bullishly cautious, especially with the RSI being heavily overbought. The previous supply zone in red will likely work as support, but if push comes to shove, FTM will drop to $1.5.