- Buyers initiated push after LUNA declined past the key support zone at $25
- Bearish signs still on the horizon that could push price lower by 67.1 percent
- Critical support level crucial to be maintained to consolidate uptrend momentum
Terra price analysis shows that the cryptocurrency has had quite a dramatic 24 hours. After falling 15.38 percent to $27.22 just yesterday, LUNA bounced straight back as soon as price fell below the key support level at $25. The token is up around 14 percent since then to rise back just above the $30 mark as it looks to consolidate there. The buyer push was initiated once support was breached and the Relative Strength Index (RSI) fell below 20 to indicate an extremely undervalued status.
However, the current trend could prove to be temporary resistance against the fall as price continues to dwindle between a wide range of $25 to $38 over the past week. Hence, consolidation above support levels near the current price remains crucial.
Price action for LUNA followed a largely positive 24 hours for Altcoins in the larger cryptocurrency market. Ethereum went back past the $3,500 mark by moving up 3 percent, whereas Ripple, Cardano and Dogecoin showed increments of around 1 percent each.
The biggest uptrend was observed in Solana, as it rose 7 percent to sit at $187. Bitcoin, however continued its decline from yesterday, falling another 1.5 percent to sit just above $46,000.
LUNA/USD 24-hour chart: Classic bullish hammer pattern appears over intra-day trade
The 24-hour price action for Terra price analysis shows the appearance of a bullish hammer pattern over the last 24 hours. Price fell as low as $20.92 yesterday, which sprung buyer momentum into the market. By the close of session, price went up to $27.94 and looked to be picking up.
The current session shows continuation from there, as price moves past the lower Bollinger bands curve to suggest incremental value. However, it sits precariously still at the 50-day moving average of $31 and needs to form a consolidation pattern from here to continue the bullish prospect.
LUNA/USD 4-hour chart: Price moves above moving average but RSI needs to improve
The 4-hour price action for LUNA/USD pair shows upshift in momentum after consecutive red sessions since yesterday, taking price above the Simple Moving Average (SMA) with increasing trading volume.
While both signs seem good enough to justify the upturn, the RSI still sits at a lowly 48, with potential to move upwards to indicate solidification of buyers in the market.
Price currently sits at the 0.5 Fibonacci retracement level, indicating there might be some downturn before a more strong advance past the all-time high of $37.64.
The volatility in current trend for LUNA continues to dominate price action. After falling past critical support at $25 yesterday, the token gathered momentum to climb back up to the $30 mark.
However, if price continues to oscillate within such a wide range, a bearish outlook will look increasingly likely. All LUNA needs for now is to maintain a consolidation period near current price before kicking off the next push.
For this to happen, critical support zones must be well-covered with buyer momentum and RSI improve to a higher value.
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