- LUNA’s price has risen by more than 100% in the past 10 days.
- Investors could now take profits as suggested by the technicals.
- A spike in selling pressure could see prices dive toward $ 77.
Share this article:
Terra’s native token LUNA has enjoyed significant gains over the past 10 days, outperforming much of the crypto market. Now, it appears to be preparing for a brief correction before prices head higher.
LUNA Is Primed for a Brief Correction:
LUNA seems to be bound for a brief correction after doubling in price, with more than 106% gains since Feb. 20.
The altcoin appears to be overbought, and recent price action suggests that a spike in profit-taking is close at hand. As such, LUNA’s price could drop before it resumes its uptrend.
Based on the technicals, a short-term pessimistic outlook seems imminent. The Tom DeMark (TD) Sequential indicator presents a sell signal on LUNA’s daily chart. A bearish formation has developed in the form of a green nine candlestick; if validated, LUNA could retrace for one to four daily candlesticks until it finds stable support.
The Fibonacci retracement indicator, measured from Jan. 31’s low at $ 43.40 to Mar. 2’s high at $ 97.40, suggests that the potential price correction could extend to $ 77 if LUNA prints a daily close below $ 86. This fundamental support level could be strong enough to prevent further losses and serve as a route for sidelined investors to re-enter the market by purchasing the altcoin.
Furthermore, market participants may experience “FOMO” if LUNA closes above its recent high of $ 97.40. Breaching this critical resistance level could increase buying pressure behind the asset, pushing prices into new all-time highs. LUNA could then find resistance as it approaches prices of $ 112 to $ 120.
LUNA is currently the seventh-largest cryptocurrency with a market capitalization of around $ 33.2 billion.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
NFT Express: Your on-ramp to the world of NFTs:
At Tatum, we’ve already made it super easy to create your own NFTs on multiple blockchains without having to learn Solidity or create your own smart contracts. Anyone can deploy …
Terraform Labs Launches Nonprofit Luna Foundation Guard:
Terraform Labs, the company behind the Terra blockchain, has announced today the formation of the Luna Foundation Guard — a non-profit created to foster the growth of the Terra ecosystem. Terraform Labs …
Unlike Terra and Phantom, Solana and Binance DeFi Is Lagging:
The total value locked in decentralized finance across Solana and BNB Chain has declined sharply over the course of last year. DeFi on other Layer 1 chains like Terra and …
THORChain Rallies 26% Ahead of Terra Integration:
The cross-chain decentralized exchange THORChain has soared 26% today, pushing the network’s native RUNE token up 51% over the past seven days. RUNE Rallies Again THORChain has rebounded ahead of …