On Friday, the Terra (LUNA) price turned down from the $100 resistance forming an evening star candle pattern. The long-bearish candle showed a 13% intraday loss and breached the $93 support. Can the sellers extend the correction to $78.5 support, or will buyers step in to continue their rally?
Key points:
- The LUNA chart shows a higher price rejection candle at $93 flipped resistance
- The daily RSI chart shows negative divergence.
- The intraday trading volume in the LUNA is $3.386 Billion, indicating a 41% loss.
Source- Tradingview
Amid the geopolitical issue between Russia and Ukraine, the Terra coin gathered remarkable gains as February ended. The altcoin doubled from the $48 support in less than three weeks, resting the All-Time High resistance of $100.
However, the higher price rejection candle on march 9th and 10th suggested the sellers continue to defend this level with vigor. The follow-up reversal breached the immediate support of $93, displaying an evening star candle pattern.
Today, the retest phase shows a long-wick rejection candle indicating the intense supply pressure at the higher levels.
The renewed selling could plunge the altcoin by 12%, bringing it to $78.5. However, a confluence of other technical support, i.e., 20 DMA and 0.5 Fibonacci retracement level, suggests the buyers would mount a strong defense at this mark.
On a contrary note, if buyers pushed the coin price above the $93 mark. The resulting fakeout will encourage buyers to rechallenge the $100 resistance.
- Resistance levels: $93 and $100
- Support levels: $78.5 and $63
Technical indicator
A bearish divergence in the daily-Relative Strength Index (73) bolsters a pullback to the following support($78.5)
However, the recovery rally reclaimed a bullish sequence among the DMAs(20, 50, 100, and 200). These DMA lines could assist buyers in continuing the bullish rally.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/luna-price-prediction-luna-sellers-provoke-another-pullback-can-78-5-support-provide-a-dip-opportunity/