The LUNA price chart maintains the short-term downtrend wobbling in a parallel channel pattern. The first weeks of February led to a minor relief rally which reached the $60 psychological level. However, the sellers defending this mark have rejected the coin price and plunged to below the 0.5 FIB mark. How far will this correction go?
Key technical points:
- The 200 DMA stands as strong support for the LUNA price
- A rising ADX indicator signals a continuation of the downtrend
- The intraday trading volume in the LUNA is $1.5 Billion, indicating a 13.6% loss.
Source- Tradingview
On January 28th, the LUNA price pierced the 50% Fibonacci retracement level($53.6), threatening further downfall. However, the 200 DMA bolstered the bulls in defending this level and triggered a bullish reversal.
The relief rally registered a 39% gain from the January 31st low($43.3) and surged above the $53.6 mark. Yet, the buyers failed to push the altcoin much higher, and the price reversed from the $60 psychological level.
The daily-Stochastic RSI displays a bearish crossover of the K and D line, providing more confirmation for short-sellers.
LUNA/USD: 4-hr time frame chart
Source-Tradingview
The LUNA/USD technical chart indicates the pair is resonating a falling channel pattern. The buyer failed to sustain the coin price above the $53.6 mark, resulting in another fallout from the same level. The altcoin approaching the 200-day EMA level will test buyers’ commitment at this support.
If buyers rebound from the 200-day support, the LUNA price will climb to the downtrend line of the falling channel. On a contrary note, violating this bottom support, the sellers would sink the altcoin to $36 support.
The average directional movement index(19) curving up accentuates the rising bearish momentum.
- Resistance levels: $53, $65
- Support levels: 200-day, 36.8
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/terra-price-analysis-luna-buyers-lost-the-50-retracement-level-can-200-dma-save-them/