In the last two weeks, the Terra (LUNA) buyers provided a second bounce from the $48.6 support, indicating the traders are buying this dip. However, the 20-day EMA dynamic mounts a stiff resistance on the upside, narrowing up the price range. Will sellers continue to dominate or buyers make a major move?
Key technical points:
- LUNA buyers attempt to te regain 200-day EMA
- The LUNA price spats 8.11% from $48.6 support
- The intraday trading volume in the LUNA is $2.4 Billion, indicating a 123.6% hike.
Read More: Terra LUNA Project Review and LUNA Price Predictions 2021
Source- Tradingview
On February 17th, the LUNA price turned down from the 20-day EMA with an evening star pattern. The bearish candle plummeted to the immediate support of $48.6, threatening further price correction. However, the long tail candle on February 20th indicates the buyers are defending this support.
Today, the LUNA price rebounded from the $48.6 support, with its intraday of 4.63.%. The bullish candle would soon challenge a confluence of major technical levels, i.e., $54 horizontal level, 20-day EMA, and 0.5 Fibonacci retracement level.
The MACD indicator shows steady growth in the fast and slow line. A breakout above the neutral zone(0.00) would provide additional confirmation for long traders.
Will 50 and 100-day EMA Negative Crossover Bolster The Selling Pressure
Source-Tradingview
If buyers breach the overhead resistance(48.6), the coin price would surge to the next shared resistance of $60 and the 50-day EMA, which stands as the key resistance for possible trend reversal.
On a contrary note, if LUNA price again reverts from the 20-day EMA, the selling pressure would escalate and threaten a bearish breakdown from $48.6 support. If they succeed, the altcoin would plunge another 7%, bringing it to the $45 mark.
The descending 20, 50, and 100-day EMA indicates the sellers have an upper hand. Moreover, the 50 and 100-day EMA bearish crossover could attract more sellers in the market
- Resistance levels: $48.6 and $60
- Support levels: $45.6 and $45
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-price-soars-amid-multiple-hurdles-ahead-is-it-safe-to-buy/