Terra (Luna) price breached $60.0 briefly before recovering back to the psychological level on Saturday. LUNA extends its two-days decline after failing to hold highs near the long-term horizontal resistance near $87.91.
- Terra’s (LUNA) price is not immune to the global sell-off in the crypto market.
- The loss is limited due to the launch of the Luna Foundation Guard.
- Buyers fight near the lower levels seeks bottom buying opportunities.
LUNA devalues nearly 40% since January 16
On the daily chart, the pair has been trading above the 50 DMA and peaked at $103.39 on December 27. Terra (Luna) tested the DMA again on January 7. The formation of “head & shoulder” is a bearish reversal pattern. The neckline of the pattern is broken on January 20, which also coincide with the breach of the 50 DMA. Teraa fell almost 36$% in three days.
Next, the price tested the 100 DMA at $61.69 in today’s session. However, the buyers returned at the lower level and make a futile attempt to cross the session’s high.
Furthermore, the formation of a “long-legged Doji” candlesticks pattern indicates that traders are confused about the next price action. There will be fights between bulls and bears at the current levels.
A bounce-back is expected toward the ascending trend line of $80.00.A decisive close above the right shoulder of the H&S pattern could test the $93.79 horizontal resistance line.
Looking at the technical indicators, the momentum oscillator daily relative strength index (RSI) trades at 37 indicating there is still scope left for the sellers. The MACD (Moving Average Convergence Divergence) fell below the midline again pushing the bearish bias for the pair.
Now, the price will be set for a fresh selling cycle if the next candlestick is closed below the horizontal support line at $50.0 which is also the low of January 19. Market participant next will set their eyes on the psychological $40.0 levels last seen in November.
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