Terra price analysis: LUNA/USD to break below the daily support found at $78.2

Terra price analysis

TL;DR Breakdown

  • The Terra price analysis is bearish.
  • Bears have plunged LUNA’s price down once again.
  • Support for LUNA is present at $78.2.

Terra price analysis is currently ranked at 31st position on CoinMarketCap. After a strong run in the month of August, whereLUNA surged by over 275%, the coin started to correct lower in September.

The 4-hour chart shows that the coin has formed a descending triangle pattern and is currently trading just below the resistance line of the pattern.

The descending triangle pattern is a bearish continuation pattern that happens when the price of an asset falls to new lows, but each time the lows are getting closer to each other.

LUNA/USD 1-day price chart: Bulls stand helpless as bears dominate

The price is currently trading close to the support level of $78.2 and a break below this level could result in a further decline in price. The RSI indicator is currently in the oversold zone, which indicates that the bears are in control of the market.

From a longer-term perspective, the weekly chart shows that the Terra (LUNA) price is in a downtrend since the beginning of September. The price is currently trading below the 20-week moving average and looks set to continue its decline in the coming weeks.

Terra price analysis: LUNA looks for support as bearish momentum plunges down the price to $85 1LUNA/USD 1-day price chart. Source: TradingView

The volatility is increasing for LUNA/USD as the Bollinger bands are diverging again, with the upper end of the indicator at the $119.8 mark representing the strongest correction, but it is not important at this time. The lower end of the Bollinger bands is present at the $82.8 mark representing the strongest support which is an important point to observe in the coming hours.

The relative strength index (RSI) is moving downwards at a sharp curve and has reached index 40 in the lower half of the neutral zone. The RSI level is still acceptable, but it may sink further in the coming hours if the heavy sell-off continues.

Terra price analysis: Recent developments and further technical indications

The Terra (LUNA) price is bearish in the short-term following a descending triangle pattern breakout. Bears have pushed the LUNA price lower after it surged by over 275% in August. The price is now trading below the resistance line of a descending triangle pattern on the 4-hour chart.

The RSI indicator is currently in the oversold zone, which indicates that the bears are in control of the market. Thus, we can expect the price to continue its decline and reach the next support level at $60.5 in the coming days. Short-term traders can consider shorting the LUNA/USD pair with a stop-loss below $78.2.

Terra price analysis: LUNA looks for support as bearish momentum plunges down the price to $85 2

LUNA/USD 4-hours price chart. Source: TradingView

The relative strength of Terra price is bearish in the short-term following a descending triangle pattern breakout. Bears have pushed the LUNA price lower after it surged by over 275% in August. The price is now trading below the resistance line of a descending triangle pattern on the 4-hour chart.

The RSI indicator is currently in the oversold zone, which indicates that the bears are in control of the market. Thus, we can expect the price to continue its decline and reach the next support level at $60.5 in the coming days. Short-term traders can consider shorting the LUNA/USD pair with stop-argets for this trade are $60.5 and $50.0.

Terra price analysis: conclusion

According to the terra price analysis, most of the technical signals are suggesting a downward move, but when looking at chart patterns and RSI’s sinking, it is reasonable to expect that the price will decrease further in the next hours, days, and LUNA may drop into $70 range by the following trading session.

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.
William Suberg

William Suberg

William Suberg is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. William is a lover of sports.

Related News

Hot Stories

Ripple price analysis: XRP turns bearish again after pulling back up to $0.45, what's next?
Portugal unveils capital gains tax on crypto
Dogecoin founder says 95% of cryptocurrencies are ''scam and garbage"
Ripple price analysis: XRP/USD set to break above the $0.5 resistance
Cardano Price Prediction 2022-2030: Is ADA a good investment?

Follow Us

Industry News

The Pussyverse: How cryptocurrency Could tackle gender inequality in finance
MiamiCoin and NewYorkCoin plummet over 85% despite Mayoral endorsements
Cloudflare grants public access to Ethereum and IPFS gateways
Coinbase slows down hiring plans after Q1 losses
Korea's authorities open investigation into TerraUSD collapse