Cryptocurrency News, Cryptocurrency Price Analysis, Terra (LUNA)

Terra (LUNA): Is the $78.5 Support A Dip-Buying Opportunity?

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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
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