LUNA/USD bullish for the next 24 hours

TL;DR Breakdown

• Terra price analysis is bullish today.
• Price dropped more than 6 percent to move as low as $78.75
• LUNA/USD is currently at $76.76.

After yesterday’s upward move to $88.31, the price of LUNA dropped over 6 percent today, with sell-offs following the announcement of a significant acquisition. Price appeared to be approaching the bullish barrier of $91.80 but was unable when it reached as high as $88.31, where profit-taking action stopped the trend in its tracks.

Price is currently trading at $78.75, with trading volume increasing by 8 percent compared to yesterday’s 30-day average, indicating the bulls are losing momentum in their drive to breach the resistance line of $88.31. The price has dropped below the 100-day moving average. Still, it also failed to cross above the 50-day moving average, which will be a critical indicator that either side has enough buying or selling power to sustain more significant trends.

LUNA/USD 24-hour chart: Bulls struggle to bring price up as selloff continues

On the 24-hour candlestick chart for Terra price analysis, the price can be seen taking a turn downwards at the start of the day’s trade. The market opened at $80.32 and reached as high as $88.44 before starting a selloff.

Suppose the price can recover momentum on the downward trend. In that case, it will first encounter resistance at $86.98 before reaching $91.80, which was yesterday’s high but remains a barrier for bulls to cross over successfully to continue the upward trend. If the price manages to breach this barrier, an upward move towards $100 could become a possibility in the short term if volume follows suit with a significant increase in trading activity today.

On the 1-day chart, the price is still trading inside yesterday’s range, with the price having successfully crossed over the 100-but failing to cross above the 50-day moving average. The RSI value of 53.78 reveals that buying pressure is present and suggests that there could be an upward move towards $88.31 before another decline towards $74 support takes place. Today’s swing low at $73 is slightly higher than yesterday’s lowest at 73.11, implying some small-scale consolidation has occurred today along with a slight increase in volume.

After failing to cross above $91.80, the price formed an Evening star candlestick pattern before starting to sell off gradually since this morning’s open at $80.32 to its current position at $78.75.

Suppose selling pressure continues throughout today or tomorrow’s trading session. In that case, the price will likely fall as low as $76.82 (100-day moving average) before reaching for resistance above $86.98, putting it back into a downward trend towards $74.64.

LUNA/USD 4-hour chart: Price continues to dip despite buyer effort at $76.17

The LUNA/USD pair’s 4-hour chart shows a continuous slide downward throughout the session, offset by buyers pushing at $78.51 and $76.17 despite sellers dominating. Price is threatened with a further decline toward $72 support, where sellers have the upper hand, with an RSI value of 37.51 indicating low market worth.LUNA is expected to fall even further in the immediate term, along with the larger cryptocurrency market. It will seek to pick up buyer momentum near the $73.24 50 percent Fibonacci Retracement level over the next few hours before looking for any further movement.

The MACD is beginning to decline, indicating a possible decline headed future with no significant levels of buying or selling pressure at this time.

The bearish correction started after a bullish momentum yesterday that saw the price move from an opening of $70.48 to a high of $88.44, with a low of $75.96, before finding stability in a range between $78 and $80.

Terra price analysis: 4-hour chart. Source: Trading View

The Evening Star pattern, which can be seen on the 1-day chart for the coin, signals the bearish correction after yesterday’s bullish momentum. The Evening Star pattern consists of three candlesticks with a small real body in the first instance, followed by a candle with a large real body close to its high. The third candle should close well into its lows but closes lower than the second candle’s real body.

Terra Price Analysis: Conclusion

The cryptocurrency market is still bullish, but the bearish correction is imminent, as seen on the 4-hour chart. Price tried to break above $91.80, which turned out to be a barrier for bulls, with an Evening Star-forming after yesterday’s bullish momentum.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.