Terra (LUNA) Price Shows Buying Interest, Sets Eyes On Weekly Highs at $90.0

By Rekha chauhan
January 20, 2022 Updated January 20, 2022
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LUNA price has shown signs of strength on Thursday with 2% of gains approx. while extending the previous two day’s upside momentum. The broader cryptocurrency market has been treading water for the past few sessions, LUNA has been showing remarkable resilience near the lows. LUNA remains a bright spot for the traders.

  • Terra’s LUNA bounce back is still under the process, further upside is likely.
  • A daily close above $82.88 would form the base for a move towards the weekly highs of $90.0.
  • Downside risk remains intact on the weekly chart with bearish RSI divergence.

LUNA Foundation Guard (LFG) announced support to Terra Ecosystem and Open-source Technology

Singapore-based Luna Foundation Guard (LFG) officially announced its formation and mission objective to support the growth and development of open-source technology, and to facilitate the purpose of a decentralized economy. In doing so, LFG shall receive an initial gift allocation of 50 million LUNA from Terraform Labs (TFL).

Technically speaking, the formation of higher highs and lower lows that begins from the lows of $37.84 ended with gains of 173% on27 Dec after the price peaked at $103.50. This marked the making of the ATH price level. However, LUNA’s price has dropped almost 39% since then after bottoming out at $62.56 and bouncing back to $87.00. Thus, forms the double top formation building pressure on the bulls.

Source: Trading view

LUNA bulls find some respite, as the price trades above the 20 & 50 days SMA. The daily Relative Strength Index (RSI) is at 51 with a bullish crossover. Thus, creating a short-term bullish scenario towards the weekly highs of $90.00. The next upside target seems at the all-time high of $103.50.

The price has been continuously trading above the 50-DMA since December 27, still, the price continues to trade above the significant moving average. The volume dropped more than 25% to $1,681,978,961 in the past 24-hour.

On the other hand, a decisive close below the January 18 lows of $74.03 would risk the downside toward $68.00.

 

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.
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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