- LUNA price has outperformed the broad crypto market with consecutive new ATHs.
- Colossal gaps between Tenkan-Sen and candle bodies suggest an incoming reversion.
- Oscillator readings support massive overbought conditions.
Terraform price has displayed an impressive winning streak, recording new ATHs over four consecutive days. Nevertheless, the upward momentum might see a pause. Keep in mind that most assets decline after recording remarkable highs.
LUNA to See 29% Crash to $75
Terra’s LUNA hovers at extreme levels after highs within the past sessions. According to the Ichimoku, the extremes showcase the considerable gaps between daily candle bodies and Tenkan-Sen. Nevertheless, these gaps do not persist and may resolve within six periods.
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Also, the oscillators note that LUNA is approaching massive overbought conditions. The RSI nears the initial overbought mark in a bullish market (80) and might exceed if LUNA touches $105.
The Composite Index also stays at historical highs. That way, Composite Index has a higher chance of registering new ATH if the alt’s price surges to $105. Moreover, the Optex Bands stay close to the overbought areas with a slope that shows it will exceed the dissipations.
The $105 ceiling is the algo 100% FIB expansion for Terra. With the parabolic increase over the last nine days, LUNA has the probability of hitting this level. Meanwhile, a mean reversion to the Tenkan-Sen near the $75 psychological level is the probable support level.
Nevertheless, Terra’s price is somewhat extended and might not rise towards $105. The altcoin has all it takes to slide towards the $75 mark without conquering the $100 level. The Kijun-Sen and high volume node at $68 will likely limit the downsides.
Moreover, the crypto spectrum depicts downward actions after the bullishness that dominated yesterday. Bitcoin jumped to $49K before slight retracements emerged. While publishing this blog,
BTC traded at $48,488 with overnight losses. Though LUNA has decoupled from the broad market sentiments within the previous sessions, its upcoming actions might depend on the global market movements.
Bitcoin has to surge past $50K to support the broad market. Failure will mean bearish dominance, translating to lows. For now, Terra’s path with fewer obstacles is the downward one.
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