Terra price analysis: LUNA falls below $40 as bears take over

Terra price analysis

TL;DR Breakdown

  • Terra price analysis suggests downwards movement to $37.50
  • The closest support level lies at 38.00
  • LUNA faces resistance at the $42.50

The Terra price analysis shows that LUNA has broken down below the $40.00 key support level. The buyers had previously defended the level multiple times but succumbed to recent rise in the selling activity across the markets. 

The broader cryptocurrency market has observed a bearish market sentiment over the last 24-hours as most major cryptocurrencies record negative price movements. Major players include HEX and AVAX, recording a 14.72 and a 9.04 percent decline respectively.

Terra price analysis: LUNA breaks below $39.00 as the selling continues

Terra price analysis: LUNA falls below $40 as bears take over 1
Technical indicators for LUNA/USDT by Tradingview

Across the technical indicators, the MACD is currently bearish as expressed in the red color of the histogram. However, the indicator shows low momentum as the histogram is small at press time. Furthermore, the indicator has observed three crossovers across the last three days suggesting a lack of a clear direction for the Terra price analysis. 

The EMAs are currently trading close to the mean position as Terra records little net movement across November. At press time, the 26-EMA is moving horizontally reflecting the oscillating price action over the past 2 days. On the other hand, the 12-EMA has reacted to the recent breakdown below the $40.00 mark suggesting a decay towards the $37.50 

The RSI is currently neutral and trades low at the 36.16 index marks suggesting a slight bearish bias to the price action. At press time, the indicator is moving downwards suggesting an increasing selling activity in the markets. The neutral position of the indicator suggests that the Terra price still has room for movement before the bears would require a trend correction. 

The Bollinger Bands are currently narrow but show expansion downwards in recent hours as the price breaks below the band’s bottom line. Previously, the bands provided the price action with a support level at $39.80 but since the breakdown, the bands are yet to expand to accommodate the recent movements. Traders should expect Terra price volatility to increase significantly across the short term.

Technical analysis for LUNA/USDT

Overall, the 4-hour Terra price analysis issues a strong sell signal with 16 of the 26 major technical indicators showing support to the bears. On the other hand, none of the indicators support the bears suggesting that there is little to no buying activity occurring in the markets. Meanwhile, the remaining ten indicators sit on the fence and issue no signals at the time of writing. 

The 24-hour Terra price analysis shares this sentiment and issues a sell signal with 12 indicators suggesting a downwards price movement against only four indicators suggesting an upward price movement. The analyses highlight the lack of momentum from the buyers across the mid-term charts. At the same time, ten indicators remain neutral and do not support either side of the market. 

What to expect from the Terra price analysis?

Terra price analysis: LUNA falls below $40 as bears take over 2
4-hour price chart by Tradingview

The Terra price analysis shows that LUNA has been stuck in limbo around the $42.50 price level. While the price action previously made attempts at both, breaking down the $40.00 and climbing above the $45.00 mark, neither side was successful and the price kept oscillating. With the recent breakout, LUNA can be expected to fall down towards a lower support level as volatility increases.

Currently, traders should expect the Terra price analysis to observe a breakdown to the $37.50 and further below the $35.00 mark as selling increases in the markets. The mid-term technical analyses and the short-term indicators are both bearish further reinforcing this suggestion.

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.
Bilal Ahmed

Bilal Ahmed

Bilal Ahmed is a blockchain enthusiast and an avid reader who loves writing about ramifications of blockchain and cryptocurrencies. He believes in doing due diligence with facts before transmitting.

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