LUNA Technical Analysis: Bloodbath Knocks Down Bulls Below $50
Terra is a blockchain-based protocol that utilizes stablecoins with fiat pegged to provide price stability for global payment systems. According to its white paper, Terra combines the price stability and wide adoption of fiat currencies with the censorship-resistance of Bitcoin and offers fast and affordable settlements.
Let us move ahead to read about Terra technical analysis.
Past Performance of LUNA
The LUNA coin price fails to sustain above the $50 support zone and breaks below the 200-day EMA. The coin price faces a rejection of more than 35% in the past week. At press time, it is 57% below an all-time high of $103.
LUNA Technical Analysis
The downfall in LUNA gains momentum a few days after the Twitter user "Zach" exposed a core participant in the Wonderland project as Michael Patryn in a tweet. Michael is the co-founder of the famous Canadian exchange QuadrigaCX, a Ponzi scheme that collapsed in 2019.
The crucial Exponential Moving averages show a reversal in the 50 and 100-day EMAs, which may soon give a bearish crossover in the daily chart. The price breaks below the 200-day EMA reflecting a boom in the selling pressure.
The DMI indicator shows a vast gap between the -DI and +DI lines increase in a bearish alignment with the ADX reflecting a boom in trend momentum. Therefore, the indicator reflects a boom in underlying bearishness.
The Stochastic RSI Indicator shows the K and D lines merge and continue a sideways movement in the oversold zone. Hence, the indicator gives a sell signal for the LUNA coin.
In a nutshell, the technical indicators suggest the LUNA coin is under extreme selling pressure and might soon reach the $36 mark.
Upcoming Trend
The LUNA coin price action strives to create a single bullish candle, but the immense selling pressure overtakes the trend control. Therefore, investors need to wait till the prices form a bottom before buying the dip.
The price action suggests support levels at $40 and $36 below the 200-day EMA that can halt the downfall. And, in case of a reversal, resistance levels are at $50 and $56.
At the time of writing, TradingView gives a "SELL" signal for the LUNA token.