The technical chart indicates the overall trend for Terra coins is strongly bullish. LUNA price showed a strong recovery from $60, which indicated the continuation of its bullish trend. However, the price failed to sustain above the $80 mark and gave a head and shoulder pattern fallout in the 4-hour chart.
Will the prices find a support level quickly or succumb to the increased selling pressure?
Key technical points:
- The LUNA price falls below the $80 mark
- The 50 and 20-day SMAs are on the verge of giving a bearish crossover
- The intraday trading volume in the LUNA coin is $3.08 Billion, indicating a 180% rise.
Source- Tradingview
In our previous coverage of Terra technical analysis, the coin price was trying to sustain above $80 flipped support. However, the sudden increase in selling pressure all over the crypto market and the oldest cryptocurrency, Bitcoin, breaks below the $40K mark.
LUNA price breaks below $80, as it fails to sustain above the 0.236 Fibonacci level. The free fall in the coin price may find support near the 0.382 Fibonacci level close to the $65 mark.
The LUNA price breaks below the 50-day SMA while the chances of a bearish crossover within the 50 and 20-day SMAs increase.
The Moving average convergence divergence shows the MACD and signal line finally giving a bearish crossover after merging. The quick fall in the fast line increases the distance, with the slow line indicating a solid bearish short-term trend.
LUNA Price Chart In The 4-hour Time Frame
Source-Tradingview
The LUNA price has decreased 12.93% in the last 24 hours resulting in a huge bearish engulfing candlestick. This reversal in coin price results in the fallout of a head and shoulder pattern in the 4-hour chart. Therefore, a free fall to the $65 mark is highly likely.
The increasing slope of the average directional movement index(21) indicates the rise in bearish momentum.
LUNA price action suggests the crucial support levels for LUNA price at $64, followed by a horizontal level at $52 in the 4-hour chart. Meanwhile, the resistance levels are $87 and $100.
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-increased-selling-pressure-in-luna-coin-price-heads-lower-to-65-2/