LUNA price prediction – Is recovery in sight now after 20% slide from Monday’s high?
Terra [LUNA] noticed a 20.1% worth drop that started on Monday and stopped within the early hours of Tuesday, at $0.127. Since then, the value has bounced between $0.127 and $0.135, and was at $0.13 on the time of writing.
In a latest report, AMBCrypto had written that LUNA provided a great shopping for alternative as a result of its protection of the $0.15-$0.16 demand zone the earlier week. Nevertheless, the bullish expectations have been confirmed mistaken since after the token’s newest downturn.
Which means will LUNA go subsequent?
Supply: LUNA/USDT on TradingView
The three-day chart revealed a bullish construction for LUNA. The long-term development has been bearish since Might 2022. In between, there have been prolonged durations throughout which LUNA’s worth motion broke the market construction bullishly.
To this point, it has been unable to maintain any such breakout going for a big time period. Possibly, it would by no means get better to the $80 or $100-levels it was earlier than the Terra crash. Nevertheless, that doesn’t matter to merchants, who could make earnings from short-term tendencies.
The transfer previous the $0.168 native excessive from mid-September meant that LUNA’s market construction was bullish. This might arrange a rally in direction of a few of the previous swing highs. The OBV’s dramatic upward thrust, and the amount bars in December underlined elevated buying and selling quantity behind the value surge.
Supply: LUNA/USDT on TradingView
The 4-hour chart revealed that LUNA bulls have been barely holding on to the 78.6% Fibonacci retracement stage at $0.13. Moreover, the decrease timeframe demand zone at $0.15-$0.18 was additionally ceded to the bears following Monday’s volatility.
Each these developments highlighted a hike in bearish strain within the brief time period. The H4 construction was bearish as properly.
Which path is LUNA much less more likely to take?
Given the construction on the 1-day and 3-day timeframes, holding on to a bullish bias is smart. LUNA solely must get better previous key help ranges, akin to $0.155, to get better the positive aspects it made every week in the past.
On the similar time, we must always do not forget that Bitcoin’s [BTC] development has been bearish too. A breakout previous $94k is required to present it a bullish tinge. Till this occurs, the bullish LUNA state of affairs of a restoration in direction of $0.2 and $0.24 stays the much less doubtless route.
Merchants’ name to action- Is it time to show bearish on LUNA?
In brief, sure. Many instances in latest months, LUNA has made a bullish construction break on the 1-day and 3-day timeframes, however was unable to carry on to them. The latest bullish shift got here on the again of a lot larger buying and selling quantity, which may persuade merchants to count on a bullish restoration.
Merchants seeking to go brief can wait just a few extra days to see whether or not the token can defend $0.13 and reclaim the $0.155 former help or not.
Last Ideas
- The earlier bullish expectations for LUNA have been invalidated when the token did not defend the $0.155 short-term demand zone.
- Bitcoin’s prevailing weak point and the tendency for Terra token bulls to fail to ascertain an uptrend meant that extra LUNA drawdown was doubtless.
Disclaimer: The knowledge introduced doesn’t represent monetary, funding, buying and selling, or different kinds of recommendation and is solely the author’s opinion
