Terra (LUNA) declined yesterday after meeting the resistance at $100, printing an evening star candlestick setup. The long-bearish candlestick displayed a 13% intraday fall, breaching the support barrier at $93. Will selling pressure drop the alternative token towards the $78.5 support, or buyers extend an upside rally?
Vital points
- The Terra price chart shows a higher rejection candlestick near $93 switched resistance.
- The daily Relative Strength Index chart displays negative divergence.
- LUNA’s intraday volume is $2.386 billion, suggesting a 41% drop.
Terra registered impressive gains in February amid the geopolitical tensions between Ukraine and Russia. The alternative coin doubled from the support of $48 within three weeks, testing the ATH resistance around $100.
Nevertheless, the 9 March and 10 March higher price rejection candlestick showed sellers to defend this area with vigor. The resulting bearish move breached the $93 immediate support, forming an evening star candlestick pattern.
Today’s retest phase indicated a lock-wick rejection candlestick, confirming intense supply strength at higher levels. The renewed selling momentum might see the alt plummeting by 12%, exploring the $78 mark. Nevertheless, the confluence of technical support (20DMA and 0.5 IB retracement zone) shows buyers will ensure massive defense around this level.
Contrarily, buyers pushing LUNA high past the $93 level will lead to a fakeout that might encourage buyers to challenge the resistance at $100 once again.
Messari’s research observed that Terra boasted the leading circulating market capitalization out of the top-30 invested products. That comes as Terra trailed better-performing tokens like Avalanche, Polkadot, and Solana for most of the last quarter.
While publishing this article, Terra’s LUNA ranked 7th in the crypto-list by market value, changing hands around $89.99. The altcoin lost around 3% within the past 24hrs while staying 12% up over the previous week.
Technical Indicators
A bearish divergence in LUNA’s daily Relative Strength Index (73) backs the downward retracement towards the support floor of $78.5. Nevertheless, the recovery rally regained a bullish alignment among the 20-, 50-, 100-, and 200 DMAs. These DMA lines might help buyers maintain the bullish move.
- Resistance zones – $93, $100
- Support zones – $78.5, $63
