LUNA/USD shows resilience near the $65.45 on Tuesday. Despite the ongoing carnage in the crypto space, there are some signs emerging that signals change in the price direction. At the press time, Terra’s (Luna) price trades at $65.45 with a 0.88% loss.
- Terra (Luna) continues its fall on Tuesday.
- Expect some bounce back in price as the loss seems limited from the current levels.
- Momentum oscillators remain in the oversold zone, triggering bottom buying vibes.
The US dollar index (DXY) climbs to its highest level in the previous two weeks and reads above 96.00 on Tuesday. The safe-haven flows continue to narrate the ongoing spat in the financial markets amid escalating geopolitical tensions and US Federal Reserve policy tightening concerns.
US stock index futures fell sharply in early Tuesday morning, which indicates the path is not easy for risker-assets still.
Hammer on the daily chart- a sign of bullish reversal?
On the daily chart, there are multiple signals indicating the bullish reversal in Luna. After the recent highs from $87.58, the Terra (Luna) price has found support near the 0.618% Fibonacci retracement level, which is extending from the lows of $37.98. Furthermore, the ATH made on December 27 lost almost 46% so far.
There is multiple support congestion zone near $63.50, Luna touched this level five times since November 26. The formation of a ‘hammer’ candlesticks on January 22 resulted in the bounce-back of the price. The outlook is further strengthened by the recent formation. As a result, LUNA could push toward the $70.00 horizontal resistance level that also happened to be the 0.50% Fibonacci retracement level.
The momentum oscillators, both the daily relative strength index (RSI) that reads at 43 along with the MACD (Moving Average Convergence Divergence) hold into the oversold zone. Any uptick in the indicators could signal the impending bullish momentum.
Furthermore, the ascending trend line from the mentioned low level is being tested at $63.50 but failed to hold during the second time. The same day LUNA/USD fell 23%, the biggest single-day fall recorded since December 27. Since then price consolidates in the range of $60.00 and $70.00.