The Terra Prize has been on the slide for six days in a row. As a result, the LUNA token returned all October winnings. Nonetheless, the bulls are encouraged that Terra (LUNA) will hold the trend channel from July.
Terra, the stable coin powered payment protocol, rose 930% last week from its low of $ 5.52 in July to over $ 50.00. The impressive three-month rally threw Terra’s native LUNA token to a market cap of $ 19.4 billion, making it one of the largest cryptocurrencies in the world.
Even with the recent withdrawal, Terra is valued at $ 14.6 billion, ranking 12th among the largest cryptocurrencies behind Uniswap (UNI). However, altcoins generally show signs of stress, which has resulted in profit-taking in Terra. Subsequently, the LUNA price is under heavy attack, which threatens the bullish momentum.
LUNA price analysis
The daily chart shows that Terra has been trending up since mid-July. LUNA is still trending despite the recent weakness but is moving towards the bottom at $ 32.00. A series of lows in late September coincides with the rising trendline to create robust confluent support. Additionally, the 50-day moving average (DMA) at $ 35.90, trend ahead, strengthens scale-down support.
However, the Relative Strength Index (RSI) is trending down, suggesting that price may soon test the validity of the rising trend channel. As long as the LUNA price is above $ 32.00, the upward trend should dominate the price movement and encourage dip buying.
On the other hand, if capital continues to be drawn from altcoins, the LUNA token may lose the upward trend. If the price falls below $ 32.00, it can encourage profitable long positions to lock in profits, causing an exaggerated decline. In this case, strong support should be found between the September 21st low of $ 23.62 and the 100 DMA at $ 24.82.
Terra Price Chart (Daily)
For more market insights, follow Elliott on Twitter.
Comments are closed.