- Terra price analysis shows that it is facing an undecided market with great price volatility
- The descent from $37.64 on August 29 is likely to continue as technical signs look vulnerable
- If price starts to lower further, forced liquidation may come in play with bleak trading volume
Terra price analysis suggests that the cryptocurrency faces a spell of uncertainty in the immediate term. While there is no significant indication that price can only go downward from here, the price volatility swirling in a wide range of $26 to $38 is a cause for concern. With this uncertainty, it is hard to predict whether an upward extension is on the cards or a downturn reversal.
Over the past 24 hours, LUNA dropped a massive 15.38 percent, falling from $32.77 to trade at $27.22 at the time of writing. Its trading volume also fell more than 16 percent and market cap went down 11 percent. This put an end to a remarkable spree for LUNA that started from a low of $5.52 in July.
The impressive run saw the 16th largest cryptocurrency in the world go up to its record price of $37.64 by the end of August. However, it now has the worst 7-day performance in the cryptocurrency market, suggesting a downturn in fortunes.
LUNA followed the larger cryptocurrency market in plummeting over the past 24 hours, as Bitcoin, Ethereum and all Altcoins except Solana displayed bloodbaths. Ethereum led the downfall by going down almost 12 percent to a month-low of $3,460, while Bitcoin fell around 9 percent to drop back down well below $50,000. Even bigger dents were seen by Ripple (18 percent), Dogecoin and Polkadot (16 percent each) and Cardano (15 percent).
LUNA/USD 24-hour chart: Seller momentum takes over after period of consolidation
24-hour price action in Terra price analysis shows sellers dominating the market in the current trading session after a brief period of consolidation at the start of the month. The September 4 rise up to the second resistance point at $34.57 gave some hope that a new bullish run is to come. However, sellers came into the market at close over the last two trading sessions and pulled price to as low as $20.9.
The Relative Strength Index (RSI) has dropped to a lowly 48, showing momentum in seller action. Over the last 24 hours, price has fell past the lowest Bollinger Bands’ curve, already suggesting an oversold status.
LUNA/USD 4-hour chart: Support being tested at $25.80
The 4-hour trade pattern for the LUNA/USD pair shows the last few trade sessions being dominated by sellers. The selling action is testing support near the $25.80 mark where buyers seem to have made some effort to push price up.
Trading as low as $22.35 in the previous trading session, some buying momentum can be seen at the end to consolidate near $26.35. The RSI sits at a meagre value of 23, suggesting there is definitive room for buyers. The 0.382 Fibonacci retracement level sits just below current support, which is further below the 50-day moving average.
Terra price analysis suggests that in current decline, if price fails to gather support above $24, recent buyers may pull out of the market. In the worse case scenario, stop-loss selling will be initiated, followed by a continual decline for the token.
In such an event, the 100-day moving average of $17.68 and the 0.618 Fibonacci level of $17.70 will be the consolidation points. However, if buyers can conjure momentum through the uncertainty, LUNA can break past the first resistance at $37.64 and head towards an un-chartered territory.