With $0.16 defended, can Terra [LUNA] extend its rally by another 50%?
Journalist
Posted:
Terra has gained 226% over the previous 9 days, and 45.8% over the previous 24 hours alone. It additionally witnessed excessive buying and selling quantity in current days.
The rally was seemingly a results of the Terra Chain upgrade v2.18.
Multi-timeframe evaluation highlights bullish Terra potential
Supply: LUNA/USDT on TradingView
The weekly chart indicated that the construction had been bullish, for now. A weekly session shut above $0.168 would verify this shift. This swing excessive was essential as a result of it precipitated the earlier transfer down.
The robust buying and selling quantity over the previous two weeks was mirrored within the OBV, which has surpassed the December 2024 highs. This was encouraging for the bulls.
The RSI additionally signaled that bullish momentum was established with a studying of over 50.
The following horizontal resistances to be careful for are $0.28, $0.51, and $0.72.
Supply: LUNA/USDT on TradingView
The bullish outlook was strengthened on the 4-hour chart. The demand zone (cyan field) from $0.148-$0.163 overlapped with the 61.8% Fibonacci retracement stage at $0.155.
Moreover, the imbalance (white field) was more likely to see a bullish response upon a retest.
The confluence of demand zones round $0.16 meant any Terra [LUNA] worth dip to this area would current a shopping for alternative.
Analyzing the bearish case
The H4 RSI may type a bearish divergence over the following few days. This is able to be an early warning of a possible pullback.
If this pullback, mixed with excessive promoting quantity, pushes costs beneath the $0.15 space, it could be troublesome for the bulls.
Merchants’ name to motion: Is it possible to lengthy LUNA?
The bearish state of affairs was much less more likely to play out, because of the bullish weekly and 4-hour timeframe outlooks.
The $0.16 space can be a strong assist that bulls ought to have the ability to defend. The OBV displays sustained shopping for stress over the previous week.
Therefore, merchants can look to go lengthy within the $0.16-$0.18 space. The Fibonacci extension ranges at $0.283 and $0.34 could be the bullish worth targets.
Remaining Ideas
- The Terra improve would bolster the community safety and reliability, and has boosted sentiment.
- Within the quick time period, one other 30%-50% rally is feasible, nevertheless it is likely to be preceded by a worth dip towards $0.18.
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different forms of recommendation and is solely the author’s opinion
