LUNA/USD to break below the daily support found at $78.2
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TL;DR Breakdown
- The Terra price analysis is bearish.
- Bears have plunged LUNA’s price down once again.
- Support for LUNA is present at $78.2.
Terra price analysis is currently ranked at 31st position on CoinMarketCap. After a strong run in the month of August, whereLUNA surged by over 275%, the coin started to correct lower in September.
The 4-hour chart shows that the coin has formed a descending triangle pattern and is currently trading just below the resistance line of the pattern.
The descending triangle pattern is a bearish continuation pattern that happens when the price of an asset falls to new lows, but each time the lows are getting closer to each other.
LUNA/USD 1-day price chart: Bulls stand helpless as bears dominate
The price is currently trading close to the support level of $78.2 and a break below this level could result in a further decline in price. The RSI indicator is currently in the oversold zone, which indicates that the bears are in control of the market.
From a longer-term perspective, the weekly chart shows that the Terra (LUNA) price is in a downtrend since the beginning of September. The price is currently trading below the 20-week moving average and looks set to continue its decline in the coming weeks.
LUNA/USD 1-day price chart. Source: TradingView
The volatility is increasing for LUNA/USD as the Bollinger bands are diverging again, with the upper end of the indicator at the $119.8 mark representing the strongest correction, but it is not important at this time. The lower end of the Bollinger bands is present at the $82.8 mark representing the strongest support which is an important point to observe in the coming hours.
The relative strength index (RSI) is moving downwards at a sharp curve and has reached index 40 in the lower half of the neutral zone. The RSI level is still acceptable, but it may sink further in the coming hours if the heavy sell-off continues.
Terra price analysis: Recent developments and further technical indications
The Terra (LUNA) price is bearish in the short-term following a descending triangle pattern breakout. Bears have pushed the LUNA price lower after it surged by over 275% in August. The price is now trading below the resistance line of a descending triangle pattern on the 4-hour chart.
The RSI indicator is currently in the oversold zone, which indicates that the bears are in control of the market. Thus, we can expect the price to continue its decline and reach the next support level at $60.5 in the coming days. Short-term traders can consider shorting the LUNA/USD pair with a stop-loss below $78.2.
LUNA/USD 4-hours price chart. Source: TradingView
The relative strength of Terra price is bearish in the short-term following a descending triangle pattern breakout. Bears have pushed the LUNA price lower after it surged by over 275% in August. The price is now trading below the resistance line of a descending triangle pattern on the 4-hour chart.
The RSI indicator is currently in the oversold zone, which indicates that the bears are in control of the market. Thus, we can expect the price to continue its decline and reach the next support level at $60.5 in the coming days. Short-term traders can consider shorting the LUNA/USD pair with stop-argets for this trade are $60.5 and $50.0.
Terra price analysis: conclusion
According to the terra price analysis, most of the technical signals are suggesting a downward move, but when looking at chart patterns and RSI’s sinking, it is reasonable to expect that the price will decrease further in the next hours, days, and LUNA may drop into $70 range by the following trading session.
Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
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