- Terra price recovery from the Wormhole tragedy continues.
- LUNA encounters a bullish breakout pattern, but a conservative tactic is essential to lessen risk.
- Downside risks remain substantial, and LUNA will see a deep southward dive amid sellers’ control.
LUNA also sees the bullish strength experienced by the overall crypto marketplace. Nonetheless, Terra’s latest bearish fundamentals appear to weigh on future price movements. Meanwhile, the crypto spectrum flashed mixed signals at this publication.
LUNA Can Cancel Current Surge and Switch to Bearish Trend
Terra’s LUNA sees a bearish continuation above 38.2% FIB retracement near $51 to hit the 50% FIB retracement of $41. Rejection around the $57 daily Kijun-Sen is among the top backers to the potential downward move for LUNA. Nevertheless, bears should violate two additional support levels to recuperate control.
LUNA’s closest support zone stands at the Tenkan-Sen around $54, then the 38.2% FIB retracement near $51. Nevertheless, 38.2% FIB retracement might pause bearish actions for some time. Moreover, the Volume Profile around $51 (exhibiting a high volume node) and psychologically crucial $50 mark stand at this value area.
The oscillator backs some additional downward momentum. Meanwhile, the Relative Strength Index displays bearish conditions near the overbought region within a bear marketplace, 55. Moreover, the RSI and Optex Bands oscillator exhibit a concealed bearish divergence. Such situations warn that LUNA’s southward continuation is increasingly likely.
If LUNA bulls contemplate annulling any existing bearish sentiment, they should first ensure a daily close beyond the Kijun-Sen. Achieving that might see bulls pushing Terra towards the following crucial resistance zone near the Ichimoku Cloud bottom at $70 without hurdle.
LUNA has been on gradual recovery after the Wormhole disaster. That upward movement had the alternative coin approaching a substantial resistance. Thought with a bullish breakout pattern, enthusiasts should use a conservative approach to reduce related risks. That is because downside risks for Terra still exist. Sellers regaining control may trigger a deep southward move for the alt.
Nevertheless, LUNA will follow broad market trends. For now, the overall crypto market presents mixed signals. Nevertheless, cryptocurrency bandits remain optimistic as far as future price trends are concerned. Stay around for upcoming updates.
Editorial credit: SergeiShimanovich / shutterstock.com