- Terra hits the rocks once again after yesterday’s high of $88.31
- Price dropped more than 6 percent to move as low as $78.75
- Trading volume up 8 percent to indicate seller dominance
Terra price analysis for the day shows LUNA dropping over 6 percent after undergoing sell offs following yesterday’s push up to $88.31. Price looked to be posing upwards to the bullish barrier of $91.80 and succeeded in reaching as high as $88.31, only for profit taking action to impede the trend. Currently, Terra sits at $80.11, having just dropped below the $81.21 exponential moving average. Price will aim to stay clear of support at $72 but further sell offs could trigger decline towards the January 9 low of $62.28. Resistance remains set at $91.80 and at the all-time high of $103.
The larger cryptocurrency market endured bloodbaths as Bitcoin declined 2 percent to stay just above $42,000. Ethereum closed 3.5 percent down at $3,200 with major Altcoins suffering as well. Solana dropped 6 percent to $140, Ripple 2 percent to $0.76, and Dogecoin 1.5 percent to $0.172. Cardano outperformed the market with a gain of 10 percent pushing price up to $1.54, whereas Litecoin also recorded a 3 percent rise to $149.83.
LUNA/USD 24-hour chart: Evening Star pattern shifts trend downward
On the 24-hour candlestick chart for Terra price analysis, price can be seen taking a turn downwards at the start of the day’s trade as shown by the formation of an Evening Star pattern. LUNA currently sits below the crucial 25 and 50-day exponential moving averages (EMAs) with possibility of further retracement as trading volume rises. The relative strength index (RSI) indicates low market valuation at 48.70 having dropped from 55.60 during the day. The moving average convergence divergence (MACD) curve also indicates bearish lows after moving just below its neutral zone just above the 0.00 mark.
LUNA/USD 4-hour chart: Price continues to dip despite buyer effort at $76.17
The 4-hour chart for the LUNA/USD trade pair shows price enduring a continual slide downward over the day’s trade, which came despite buyers exerting a push at both $78.51 and $76.17. With sellers dominating, price remains in danger of further pullback towards $72 support, with the RSI value of 37.51 showing low market value. Over the next short term trade, LUNA is expected to drop further along with the larger cryptocurrency market and will look to gain buyer momentum near the $73.24 50 percent Fibonacci Retracement level.
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