Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
LUNA plunged from its all-time excessive at $119.55 on Binance, and it fell beneath the $84 space the place the worth noticed a powerful bullish impulse transfer in mid-March. Nonetheless, the bulls would have some rope to carry on to so long as LUNA can keep above the $70.7.
It was unclear if the native token of Terra was in a retracement, or whether or not promoting strain is intense sufficient to drive additional draw back. Bitcoin was simply above the $40k mark, and if BTC drops beneath $39.2k, worry available in the market may very well be intensified and drive LUNA to register extra losses.
LUNA- 12 Hour Chart
Supply: LUNA/USDT on TradingView
Prior to now week, LUNA established a variety (white) from $80.8-$89.2. Nonetheless, it has retested the $87-$89 space as resistance up to now few days. This was a bearish improvement. It hinted that LUNA might retrace additional south.
The Fibonacci retracement ranges have been plotted primarily based on LUNA’s transfer from $47.29-$104.83 the earlier month. It confirmed 50% and 61.8% retracement ranges to lie at $76.06 and $69.27, which have some confluence with longer-term horizontal ranges of significance.
The buying and selling quantity has been falling up to now few days, at the same time as the worth consolidated. This recommended that market contributors have been ready for impetus in some route earlier than getting into the fray.
Rationale
Supply: LUNA/USDT on TradingView
Each the RSI and the Superior Oscillator confirmed robust bearish momentum. The RSI on the 12-hour chart has been unable to climb previous the 40 mark, whereas the Superior Oscillator additionally slipped beneath the zero line.
The DMI additionally confirmed a powerful downward development in progress over the previous week, as each the ADX and the -DI (yellow and crimson respectively) have been above the 20 mark.
These developments have taken place in response to LUNA’s sharp plunge from $116. The OBV has additionally seen a pullback. But, this transfer south may very well be simply that- a pullback. The OBV continued to stay in an uptrend on a better timeframe.
Conclusion
Was LUNA pulling again towards the $70 mark in quest of demand? Was this bearish transfer greater than only a mere retracement? When doubtful, zoom out, the saying goes. So long as $70.6 holds, the bullish bias has some credence. Bitcoin might affect the route of Terra’s token as effectively.
