What Terra (LUNA) Needs to Attract Bullish Regime
Terra (LUNA) surged in an upward channel, recording rampant gains. That came after the alt recovered from the golden FIB level. For now, a close under the trend-line support would see LUNA retesting 23.6% FIB support. That would likely push Terra into the volatile territory. While publishing this content, LUNA traded at $85.16.
Terra 4Hr Chart
LUNA declined and violated crucial price levels since touching its all-time high on December 27. The alternative token dropped over 50% of its price within the next 35 days, poking 1-low on January 31. Terra triggered an upside rally that registered a staggering 108.62% ROI from February 20 until March 2.
The upward channel oscillation on the 4hr chart supported the crypto rally past 20EMA and 50EMA. However, bear stepped in as LUNA neared $94, triggering a sharp downward retracement. Remember, LUNA has experienced reversals at this level in the past.
As LUNA flipped 20EMA to the closest resistance from the footing, a close under the range of $83 – $84 would see the token testing 50EMA. If bears continue dominating after this, Terra will witness further declines to the support at 23.6%.
Meanwhile, bulls defending the trend-line support will trigger a concealed bullish divergence with the Relative Strength Index.
The Relative Strength Index has seen steady declines from the overbought region since the previous week. That way, the index plummeted beneath the midline, picturing a bearish bias. For now, bulls should hold the 45-support to void further drop to the trend-line foothold.
Moreover, the –DI appeared north after abstaining from completing a bullish cross. Such readings confirm bearish actions in the short term. Alas, the AXD displayed weak directional bias, maintaining downtrends.
The upcoming few candles are crucial to approve more downside. A decline under the closest support might see LUNA retesting $80 before registering a trend-committing action. However, enthusiasts need to watch broad market sentiment when interacting with this alt.
While publishing this content, the crypto space highlights bearish dominance. The global crypto market value stood at $38,316.9, following a 1.02% drop over the past day.
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