LUNA price corrected heavily in today’s session with the extension of the previous week’s losses. The recent price action suggests the sellers are in no mood to give up yet that could lead to further downside movement in the cryptocurrency. A breakdown of the horizontal support base could invoke another round of selling in the coin.
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- LUNA price crashed on Monday with sight on a four-month low.
- Investors can expect more downside towards the January low’s placed at $43.
- A pullback towards 200-day EMA could be a setup point for the bull’s re-entry.
LUNA price slips south
LUNA price continued to move lower after slipping below the critical 200-day ema (Exponential Moving Average) at $70.56 on the daily chart. The bearish formation on April 5, a ‘Spinning top’ candlestick pattern, witnessed an exponential decline in LUNA price with a descent of 55%. Furthermore, the price experienced a steep fall since April 5 indicating intense selling pressure.
Now, the price reaches a crucial juncture the levels being tested in February. An attempt to breach the mentioned barrier would result in the continuation of the downside trend in the price. We expect the price to test the lows of January 31 at $43.48.
A breakage below the level would invite a fresh round of selling in LUNA to target November lows near $37.
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While things look pessimistic for the LUNA, the price could book a sharp bounce back on the account of oversold market conditions. If that happens to be the case, the immediate upside could be at $70.
The daily RSI (relative strength index) moves towards the oversold zone. It reads at 27.
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As of publication time, LUNA/USD reads at $52.25, down 17.53% for the day. The 24-hour trading volume of the ninth-largest cryptocurrency holds at $4,444,449,397 as updated by the CoinMarketCap.
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