Terra price analysis: LUNA corrects down to $86, as bears regulate the market
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TL;DR Breakdown
- The Terra price analysis is bearish today.
- Resistance for LUNA is present at $89.5.
- Support for LUNA is present at $85.5.
The Terra price analysis is bearish today as the cryptocurrency continues to downslide. LUNA has been on a downtrend since 2nd January when the coin faced rejection at $91.9, the coin went through continuous devaluation for the last two days, and the trend is the same for today as the price has stepped down to the $86 range.
LUNA/USD 1-day price chart: LUNA trades in bears for the third day
The 1-day Terra price analysis shows the LUNA remains bearish for today as well, following the bearish trend set up on 2nd January. LUNA traded in a range of $91.3 to $85.3 today and is trading hands at $86.8 at the time of writing. LUNA/USD reports a decrease in value by 5.52 percent over the last 24 hours and also reports a loss of 1.73 percent in value over the past week. The trading volume has increased by 12.5 percent, but the market cap decreased by 4.86 percent, resulting in the market dominance of 1.40 percent.
The volatility is decreasing as the downtrend extends, the Bollinger bands are converging, with the lower band steeply coming inwards, hinting at low volatility in the future. The upper limit of the Bollinger bands is present at the $104 level, representing resistance for LUNA, and the lower band is present at $67, representing the strongest support for LUNA.
The relative strength index (RSI) has been on a downtrend for the last three days as the price continues to sink and is currently present in the upper half of the neutral zone at index 57, and the curve of the indicator is downwards, hinting at the selling activity in the market.
Terra price analysis: Recent developments and further technical indications
The 4-hour Terra price analysis shows the coin remained range-bound since the start of the month. However, today the price has sunk low towards the lower limit of the Bollinger bands. The price will either bounce up from here or will go further down. In case the latter happens, then the downtrend may extend further, bringing along further loss.
The volatility is low on the 4-hour chart, with the upper limit of the Bollinger bands at $93.4 representing resistance for LUNA and the lower limit at the $86.4 mark representing the strongest support for LUNA. The RSI is on a downwards curve at index 42. The curve of the RSI indicates the selling pressure in the market.
Terra price analysis conclusion
The Terra price analysis is bearish today as a further decrease in price has been observed today. The price function is headed downwards for the third day, but still, the price is trading in the upper price envelope, after the price peaked again on 1st January at $91.8 as the price is sinking down towards the lower limit of the volatility indicator on the 4-hour chart so it is safe to conclude that a further downtrend may be on its way.
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