Terra (LUNA) Correction Phase May Retest $54.3 Soon – Price Analysis
Terra (LUNA) shows a general uptrend in the technical chart. The altcoin moves within a traditional retracement phase and may offer a lucrative correction opportunity. Concentrate on these levels as they might support rally continuation.
Vital Technical Points
- LUNA Coin has its bears reclaiming the 20DEMA
- Terra had its intraday trading volume at $1.45 billion, suggesting an 11.5% drop.
Remember, LUNA was among the altcoins that survived and offered higher gains even with the bloodbath in the crypto space during the 4 December sessions. The asset’s rally saw LUNA touching a new ATH near $78.
Later, LUNA saw a slight correction with hopes to resume its upsurges. Nevertheless, the price failed to overcome the new resistance at $78. That translated to a massive correction phase for the coin. The critical exponential moving averages (50-100-200) support Terra’s uptrends. Nevertheless, the latest decline had the crypto dropping under the 20 exponential moving average line. Further, the RSI (50) has displayed a significant drop awaiting LUNA.
LUNA/USD Four-Hour Chart
LUNA price formed a bearish breakdown from its double bottom formation in the four-hour chart on 10 December. The pattern had its neckline at $63. After Terra indicated sufficient sustainability under this area, the altcoin’s price moves towards the following sturdy support at $54.5.
According to traditional pivot zones, market players may expect LUNA’s closest resistance to emerge at $65.5, then $73.5. On the other side, support levels stand at $54, then $46.
For now, bearishness seems to dominate the crypto market. Bitcoin bulls failed to overcome the $50,000 obstacle as the altcoin retraces towards $47,330 at this publication. Furthermore, the top ten digital coins trade in the red at the moment. Meanwhile, BTC’s upward move remains critical as its will trigger bullishness across the crypto spectrum.
As bears dominate, LUNA might retrace toward its projected targets to regain upward momentum. Moreover, BTC upswings will see alternative coins, including Terra surging. Market sentiments in the coming days can determine price direction in the cryptocurrency industry.
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