Terra price resumed its correction after facing rejection from the $1.2000 resistance. It is forming a bearish pattern and slowly eroding the previous gains.
LUNA price was unable to hold the $1.000 mark and reverted down. It showcases that the previous move is temporary and lacks the participation of genuine buyers.
At present, Terra crypto is in declining mode and slipped below both the EMAs. It indicates that sellers are active and the positional trend is in a downward direction.
LUNA begins the current month with a bearish note and it seems like bears are strengthening their grip. The price looks oversold so a minor bounce may trigger any time from the lows.
The chart structure of this crypto is highly bearish. So any short-term pullback might turn out to be an opportunity for short sellers. Until LUNA regains the $1.000 mark and sustains above it. The sellers will continue their dominance and restrict the upside.
Terra is back to the breakout level at $0.6000, from where it gains momentum. If the price falls further and slips below $0.6000, be prepared for new lows.
Will Terra Price Decline Further or Show a Bounce?
Terra price lost the bullish momentum and trapped the short-term bulls on higher levels. After analyzing the price behavior it can be said that LUNA price got pumped by the speculators for mutual benefits.
The bubble is now getting busted due to which big players are taking an exit, which is visible in the chart. The analysis suggests the hype of LUNA reversal is coming to an end. So, it’s better to avoid playing any bets and look for other alternatives.
The Volatility in LUNA Crypto is High
LUNA is one of the most favorite cryptocurrencies of speculators. Due to this volatility is high and sharp moves in any direction may come anytime. It created hope for a bullish trend reversal, but as time passed it became clear that the previous move was just a trap.
Until some genuine investors inject money, it’s very difficult for Terra to bounce back. The short-term traders may look to sell on the rise for gains. However, long-term investors must avoid it until any reliable sign of turnaround is visible.
Conclusion
Terra price got dumped after it faced rejection from $1.2000. The chart structure clearly says that the previous rally was just a trap and lacked genuine buying. Therefore, more decline is possible in LUNA. So, it’s better to avoid investing money in it.
Technical levels
- Resistance levels: $1.0340 and $1.2851
- Support levels: $0.4844 and $0.4000
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steefan George is a crypto and blockchain enthusiast, with a remarkable grasp on market and technology. Having a graduate degree in computer science and an MBA in BFSI, he is an excellent technology writer at The Coin Republic. He is passionate about getting a billion of the human population onto Web3. His principle is to write like “explaining to a 6-year old”, so that a layman can learn the potential of, and get benefitted from this revolutionary technology.
Source: https://www.thecoinrepublic.com/2024/01/09/terra-luna-price-couldnt-hold-1-has-the-rally-come-to-end/