Terra’s LUNA, Avalanche and Ethereum prices plunge in crypto market bloodbath

Altcoins in the top 10 have suffered a massive drop in their market capitalization in the recent crypto market bloodbath. Terra’s LUNA, DeFi token Avalanche and the largest altcoin Ethereum, all three experienced severe a price drops in the market correction. 

Altcoins struggle to maintain their uptrend in crypto bloodbath

Terra’s LUNA, Avalanche, and Ethereum suffered a plunge in their market capitalization among the altcoins that saw a price drops. As capital flowed out of the crypto market, it wiped out gains in LUNA, AVAX and ETH. 

Terra recently announced its purchase of AVAX token, a new partnership between the two projects to benefit the DeFi ecosystem. Despite the recent update, the correlation between the altcoins and Bitcoin negatively impacted the altcoin’s price. 

Proponents noted a bearish sentiment among crypto traders as altcoins suffered a decline in their market capitalization and on-chain activity. Ethereum price dropped to major support at $3,000, and analysts have predicted a decline below $2,700. 

The LUNA Foundation Guard (LFG) has continued its Bitcoin accumulation, building reserves for UST, Terra’s stablecoin. Proponents believe a rise in demand for stablecoins could fuel a bullish outlook among traders for Terra’s LUNA. 

@rektcapital, a pseudonymous crypto analyst, believes Avalanche price is ready to turn the new area of resistance into support as the retest is in progress. At the beginning of 2022, the Avalanche price was rejected from the $86 resistance. 

@SmartContracter, a crypto analyst, believes LUNA price has finally put in a long-term top, and a bearish engulfing pattern has confirmed the top. 

FXStreet analysts have predicted a recovery in Ethereum price and set a $4,000 target for the altcoin.