Terra Price Prediction: Bull Trap Threatens 20% Correction In LUNA

By Brian Bollinger
April 9, 2022 Updated April 9, 2022
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This Government Intensify Measures To Prevent Another UST And LUNA Crash

The Terra(LUNA) price reverted from the $120 mark with four consecutive red candles. The minor retracement pierced the $100 psychological support, registering a 21.5% loss. This freefall triggered a fallout from the channel pattern, encouraging further price correction.

Key points: 

  • The LUNA price gives a fallout from a channel pattern
  • The LUNA buyers lost $100 support.
  • The intraday trading volume in the LUNA is $2.7 Billion, indicating a 1.6% loss.

LUNA/USDT technical chartSource- Tradingview

The LUNA/USDT pair represented its march rally resonating inside a rising channel pattern. Under the pattern’s influence, the altcoin gave a decisive breakout from the $100 resistance on March 29th.

The post-retest rally drove the altcoin by 16.6%, reaching its new All-Time High of $119.18. however, the coin price turned down from the resistance trendline and nosedived below the shared support of $100, 20 DMA, and support trendline.

Furthermore, the aggressive traders who bought above the $100 mark got trapped in this fakeout, and their liquidation may drive the price even lower. Today, the LUNA price is 1.6% down and nearing the $0.382 Fibonacci retracement level at $90.

As per the FIB levels, the coin price could witness strong demand at 0.5 FIB level at $81.6, followed by 0.618 FIB level at $72.6

  • Resistance levels: $100 and $120
  • Support levels: $90 and $81.6

Technical indicator

Vortex Indicator: The VI+ and VI- slopes nearing a bearish crossover could encourage sellers to extend the correction rally

DMA: The recent price drop breached the 20 DMA dynamic support level. However, 50 DMA aligned with 0.382 FIB level, and 100 DMA near $81.6 support may bolster buyers to continue the bullish rally.

From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com
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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