- The Terra price is contained in an ascending widening wedge on the 4-hour chart.
- The digital asset needs to stay above a major trend line for support to avoid a significant decline.
- LUNA bulls face weak resistance on their way up but a correction may still be underway.
The Terra price has moved somewhat sideways in the past few days after a significant correction from its all-time high of USD 22.4. After releasing a new stablecoin earnings log for the Terra blockchain, LUNA suffered a classic “buy the rumor, sell the news” event that fell to a low of $ 15.6.
The Terra price must hold a critical level for an upswing of 8%
On the 4-hour chart, LUNA has formed an ascending widening wedge with a critical support trendline of $ 18.2. LUNA buyers have defended this level several times in the past four days, meaning it is an important staging post for the bulls.
LUNA / USD 4 hour chart
Another successful defense of this level should allow the Terra price to rebound towards the upper trend line at around USD 20. For LUNA, there is weak resistance ahead of us.
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LUNA / USD 4 hour chart
On the other hand, a loss of the key support level at USD 18.2 LUNA would result in a significant collapse towards USD 16.7. However, the digital asset could even fall to the next level of support at $ 15.7.
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