- Terra price analysis is bearish for the next 24 hours.
- The closest support level lies at 38.00.
- LUNA faces resistance at the $42.50
The LUNA price chart indicates that the company has broken down below the $40.00 crucial support level. The sellers had previously defended the mark several times, but they were overwhelmed by recent increases in selling activity across various markets.
The overall market entered a downward movement last week. You can see that in a clear way on a comparison of the LUNA and Terra charts, also featured below: Currently, the market is trading at $40.25, which corresponds to a 7% loss from this time one month ago. Of course, the price may return to higher levels judging from the indicators, but we can trade following our strategy based on candlestick charts and technical analysis.
LUNA/USD four-hour prixe analysis chart: What to expect
LUNA/USD 4-hours price chart. Source: TradingView
According to the Terra analysis, LUNA has been trapped in a holding pattern around the $42.50 price level. While the price moved up and down several times before attempting to break down the $40 mark and climb above it, neither one was successful, with the price instead oscillating. LUNA is likely to fall below a lower support level as volatility increases with the recent breakout.
Traders should anticipate a drop to around $37.50 and possibly lower soon, owing to an increase in market sales. The mid-term technical views and short-term indicators are both bearish, further cementing this prediction.
Terra Price Analysis: Conclusion
LUNA made a false breakout in the mid-term before entering a current bearish trend. The price is likely to continue with downwards movements for its next corrective cycle.
The nearest support level lies at $41.00, while the nearest resistance lies at $42.50. If the price breaks below $37.50, or even $34.50, we may see further drops to around $30.00, where LUNA may attempt to form a new temporary bottom before making another correction upwards.
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