Terra (LUNA) Price Prints New ATH, Why Traders Should Be Cautious In Short Term?

Republished By Plato

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LUNA price has risen nearly 50% the last week
LUNA Price has been in an ascending channel for 3 weeks
50MA has been holding as support for 3 weeks

LUNA price has had a wild ride the last month as prices have risen nearly 350%. BTC breaking above its major resistance mark of $40,000 allowed Terra & other alt coins to explode off their lows. The overall cryptocurrency market has been pumping for nearly a month straight, which brings the question of when will a pullback occur. At the time of writing, many coins have rejected resistance hard & look to be starting some type of retracement. This is a completely healthy scenario which would allow prices to push higher with more strength & stability.

While looking at the ascending channel shown in blue, we can see how price has tremendously respected both trend lines. Each time LUNA price has reached either trend line, price has rejected off of it. This scenario just occurred as LUNA price hit an ATH of $24 & immediately was rejected further into its channel. For LUNA to continue pushing higher, price must break & hold the major resistance level found from $22.40-$23.98. If this does occur, LUNA price will then enter uncharted territory & will form new resistance marks. Overall, this is a very good sign for the crypto market that a major alt coin has breached its previous all time high.

LUNA Price Analysis: LUNAUSDT 4 Hour Chart

TradingView Chart Snapshot

At the time of writing, LUNA price is attempting to hold its minor support level of $20.86. If this support can hold, Terra may test its major resistance zone again. In the case that bears continue control, LUNA will likely land at its next minor support level of $19.50. This support is very close to the bottom trend of the ascending channel. This area has a high chance of being the bounce zone for LUNA. Anything below this mark will turn extremely bearish as Terra would break its near 3 week uptrend line. The 50 MA has been holding as support for nearly this entire run. As long as Terra stays above this, it is in a bullish state.

While looking at the Stochastic RSI, we can see how strength just rejected off the overbought region. This is a bearish sign that LUNA price may have further to fall before another bullish push occurs. The regular RSI has just experienced a rejection off a resistance level that has been respected 3 other times. With these indicators turning bearish, it is likely LUNA price needs a cool off period of retracement.

LUNA Intraday Analysis

Spot rate: $21.00
Trend: Bullish
Volatility: High
Support: $20.87
Resistance: $22.41

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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