LUNA Technical Analysis: Sellers Line-Up for Terra, Soon to Reach $50
Terra is an application used in blockchain technology that uses stablecoins paired with fiat. In order to power globally-based payment systems that are price-stable. Terra was launched at the beginning of January 2018 with the support of Daniel Shin and Do Kwon.
The co-founders of the company aim to speed up the acceptance of blockchain technology with a focus on usability and the stability of prices.
Let us move ahead to read about Terra's technical analysis.
Past Performance of LUNA
LUNA coin price shows a decline of more than 15% in the past 24 hours resulting in the fallout of $75. Moreover, the free fall creates a huge bearish engulfing candlestick in the daily chart. It breaks below the 0.382 Fibonacci level and heads lower to the 0.5 Fibonacci level.
LUNA Technical Analysis
The LUNA coin price decreased by 25% in the past week, resulting in a high momentum short-term downtrend. With the 180% jump in the intraday trading volume, the selling pressure is on the next level.
The 20 and 50-day Simple Moving Averages give a bearish crossover in the daily chart. Meanwhile, the 100-day SMA provides support to falling prices. The 200-day SMA stands strong at $44 if the 100-day SMA collapses.
The MACD indicator finally gives a bearish crossover after the merger of the MACD and signal lines in the daily chart. Moreover, the increasing trend in the falling histograms indicates a rise in underlying bearishness.
The Stochastic RSI indicator shows a free fall in the K and D line in the daily chart after the rejection from the overbought boundary. Thus, the falling lines indicate a rise in selling pressure.
Therefore, the technical indicators reflect a rise in underlying bearishness with the increased chances of a downfall below 100-day SMA.
Upcoming Trend
The LUNA coin price has come under extreme selling pressure extremely quickly due to the fall in the world’s oldest cryptocurrency below the $40K mark.
The selling pressure may soon drive the prices below the 100-day SMA to the $55 mark or the 200-day SMA. This potential downfall will result in the fallout of the 0.5 Fibonacci level.
However, if the prices find support near the 100-day SMA and continue to rise higher after consolidation, the resistance levels are at $75 and $87.
At press time, TradinView gives a "SELL" signal for the LUNA coin.