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

By Domenic
August 17, 2021 Updated August 17, 2021
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Terra's ecosystem ravaged by recent crash
  • 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. 

Read More: Here A guide to know more about LUNA & High Time Frame Price

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

Domenic Fiore has a love for the financial markets. He decided to skip the college route to pursue entrepreneurship. He saw the vision to become an entrepreneur and wanted to achieve success from a young age. Domenic owned & operated a car detailing business since the age of 16, along with being a part of two CBD businesses through 2018 & 2019. He started his investment and trading career early trading in 2017 when he bought a newly released cryptocurrency alt-coin and saw 10x return in a few months. He then realized there was much potential and dove head first into learning everything he could. He became very passionate about technical analysis and knew it was his route to financial freedom. Over the last 4 years, Domenic has shared his analysis with many groups and received amazing feedback. Shortly after he wanted to help assist in the pursuit of spreading and helping others achieve success in the trading industry.
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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