Terra (LUNA) Approaches a Vital Level; Can Bulls Defend It?

The broad crypto market space sustained massive liquidations in Thursday amid comments from Fed, highlighting inflation concerns. The largest crypto crashed to monthly lows, exploring price levels near $42,500.

Terra has encountered massive selling momentum from the $94 mark. The $75-mark might attract LUNA buyers to the market again. However, will this value area translate to price recovery for Terra to surge back to $90 or trigger a temporary rebound?

LUNA Hourly Chart

Analysts plotted the FIB retracement zones for the short-term Terra fall to $81.1 from $103.6. It presented the 27.2% extension zone at $74.99. The level generally witnesses some price reactions. So LUNA might see a bounce there.

The level also matched LUNA’s early December highs. Therefore, market players can consider the downward move by LUNA a higher level retest of the last supply zone to look for demand. Nevertheless, the confluence forms a bouncing environment for LUNA price. However, some resistance exists near the $78-level.

Reasoning

The Relative Strength Index flashed a higher low as price action forms a lower low. The bullish divergence plus support zone confluence may see Terra on a slight bounce towards $78.2. However, selling momentum might renew at this level, especially with a lower move from Bitcoin.

The Stochastic Relative Strength Index stayed close to the oversold region while the hourly char shows an oversold RSI. That way, the alternative coin might see a bounce, but the range from $78 to $80 might witness massive sell orders.

Final Thought

Terra has been among the resilience alts over the past few months. However, the token has recorded a sharp pullback from its highs around $103. For now, the altcoin seems ready to explore further lows. The latest sell-off had lower timeframes actions on bearish and fearful mode.

Long positions individuals may have to wait for a Bitcoin move past $45,000. Such an uptrend by BTC would strengthen altcoins. Though the LUNA has massive support at $75, timing the accurate local bottom for the token might be a challenging task.

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