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Vikram
Feb 18, 2022
by Vikram

LUNA Technical Analysis: Bears Soon To Outgrow Symmetrical Triangle

LUNA
The 10% free-fall to the $50 support zone within the triangle showcases the rise in the underlying bearishness. Will the LUNA coin price breach $50?

The LUNA coin price action forms a symmetrical triangle pattern with the recent reversal to surpass the resistance trendline, resulting in a lower high formation. However, the bullish candle forming near the $50 horizontal zone teases a bullish reversal within the triangle pattern. Will the Terra coin price give a bearish fallout?

Key technical points:

  • The coin price shows a free fall to the $50 mark.

  • The stochastic RSI indicator shows a bearish crossover of the K and D lines.

  • The 24-hour trading volume in the Terra token is $1.28 Billion, indicating a 30% rise. 

    • Past Performance of LUNA

    As Bitcoin falls below the $41K mark, most altcoins get the bearish influence resulting in an overnight downfall. The LUNA coin price fell 10.30% last night, resulting in a sudden reversal to the $50 support zone. 

    Currently, the market price of the Terra token is $51.13, with a rise of 1.68% in the freshly forming daily candle in the support zone. 

    TradingView Chart

    LUNA Technical Analysis 

    The LUNA coin price forms a symmetrical triangle pattern with the market price near the support trendline. Therefore, traders can expect a bullish reversal to the resistance trendline to continue resonating within the pattern.

    The crucial 200-day EMA provides support to the falling price and helps maintain the uptrend in action. However, the 50 and 100-day EMA maintains a negative slope and hints of a bearish crossover. 

    The RSI Indicator slope succumbs below the 50% mark, and the 14-day SMA as the bears take over the trend. However, the long-coming sideways movement project the weakness in the underlying bulls. 

    The Stochastic RSI indicator projects a bearish crossover of the K and D lines in the overbought zone. Moreover, the falling slope of the lines indicates the start of a bear cycle in the LUNA/USD chart. 

    In short, the technical indicators indicate the high possibility of a bearish breakdown of the symmetrical triangle.  

    Upcoming Trend

    The LUNA coin price shows the bears overtaking the trend control and a possible bearish continuation below the $45 mark. However, traders need to wait for the price action confirmation to avoid any bear trap.

    Support Levels: $45 and $35

    Resistance Levels: $60 and $67

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    LUNA Terra
    LUNA Technical Analysis: Bears Soon To Outgrow Symmetrical Triangle
    Vikram
    Vikram is a technical analyst with several years of experience in the crypto market & Indian Equity and F&O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

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