https://ift.tt/31J9JVk price analysis: LUNA drops again after yesterday’s 20 percent rise

TL;DR Breakdown

• Terra price dropped more than 8 percent over 24 hours after yesterday’s rise up to $75.09
• Trading volume rose up to 15 percent, indicating profit taking action in the market
• Price could be in line for $62 support floor

Terra price analysis for the day shows the LUNA token facing an immediate decline right after yesterday’s 20 percent spike. Price went as high as $75.46 yesterday, but began to trend down immediately today and recorded a 9 percent decline. Trading volume increased over 15 percent, indicating majority sell offs and profit taking in the market. The start of the year has been a turbulent one for LUNA and after starting the year at $92.55, price has lost almost 26 percent. With the current downtrend in place, price could be in line for a decline down towards the $62 support.

The larger cryptocurrency market recorded decrements again, after yesterday’s positive movement. Bitcoin fell back into the $41,000s, whereas Ethereum recorded a 5 percent decline to stay just above $3,000. Among Altcoins, Cardano fell 6 percent to sit at $1.11, and Ripple dropped 5 percent at $0.72. Solana and Polkadot dipped 7 percent each to sit at $132.76 and $23.33, respectively.

LUNA/USD 24-hour chart: December 26 highs disappear with continuous bearish cycle

The 24-hour chart for Terra price analysis shows price struggling to match heights set over the month of December 2021, where a high of $101.36 was last seen on December 26. Since then, LUNA has been in constant decline, falling almost 40 percent to current price. Over the past 24 hours, price lost further ground on the crucial 25 and 50-day exponential moving averages (EMAs) at $74.55. The Relative Strength Index (RSI) shows a decreasing market value at 41.95 and the Moving Average Convergence Divergence (MACD) curve also shows bearish highs, sitting well below its neutral zone.

Terra price analysis: Conclusion

Major daily technical indicators show a continuing period of decline for Terra, as price continues to drop. With an over 8 percent dip materialising over the past 24 hours, LUNA seems primed to go as low as the $62 support. Sell offs continue to be the major trend in the market, with trading volume rising more than 50 percent. Over the coming trade, price is expected to drop further, along with the declining larger cryptocurrency market.

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