- LUNA dropped 13 percent over the last 24 hours with more downslide expected
- Increasing volatility showing classic signs of top having been reached
- Intra-week trade between $26-$35.6 range confirms volatility in action
Terra price analysis suggests that the token is set for a major price pullback, having dropped more than 13 percent over 24 and around 20 percent over the last 48 hours. Luna peaked up to above the $35 mark just 2 days ago, and has slipped more than 30 percent down to $26.5 at the time of writing.
The token has been trading within a highly volatile range of $26-$35.6 over the week, which confirms classic signs of a top being reached. Further retracement is expected even amidst a largely positive recent crypto market as price remains stretched and ripe for correction.
The larger cryptocurrency market continued to stay in the reds today, with BTC maintaining above the $46,700 mark but dropping just above 4 percent. ETH also fell 4 percent down to $3,100, along with other Altcoins, Cardano, Ripple and Litecoin, all of which dropped near 7 percent. The biggest downfall was seen with Dogecoin as it dipped more than 9 percent over 24 hours to $0.26, having enjoyed an excellent ascent a week ago that propelled it above $0.35.
LUNA/USD 24-hour chart: Price volatility confirms reversal in action
On the 24-hour price chart, negative developments are confirmed that took LUNA into overbought territory. The trading candlestick from August 24 shows opening day price at $29.8, which was then extended to buying up to $34.8, following a close at $29.5. The Relative Strength Index shot up to above 75.37, and the price has been dipping since. Over the last 24-hours, selling action is driving the market, driving the price as low as $25.76.
Price has also fallen below 50-day moving average and is in touching distance of the 20-day moving average at $22.9. At current trend, a descent down to the $20 mark seems almost likely as current RSI still shows a lofty figure of 64.25.
Terra price analysis: Conclusion
At current descent, support is unlikely to be seen till further below the current price. However, the first target amid the downslide should be the $23.30 mark, which was the March high. In a worse case scenario, the May high of $20.26 could come into play that is aligned with trend line support and the 50 percent Fibonacci retracement level of $20.57. Therefore, the $20 mark can be expected as the next support level for LUNA.
Buyers could come back into the market as this point is reached. However, if this mark fails to maintain, the outlook could turn more bearish and the descent might continue towards the 200-day moving average at $11.11.
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