Wednesday, May 18, 2022
Banner Top
By Brian Bollinger
Published 13 hours ago Updated 12 hours ago

Despite the ongoing uncertainty in the crypto market, Terra (LUNA) coin was one of the top gainers last week, registering a 102% growth from the $47.3 mark. However, the LUNA bulls are struggling to breach an overhead resistance for the past few days, suggesting a possible pullback before the buyers could continue their rally.

Where is LUNA price headed next?

Furthermore, LUNA charts show multiple price rejection candles and diminishing volume activity at the $92 mark, indicating the sellers have mounted a strong defense. If the bears hold the altcoin below this resistance, the selling pressure would accelerate and dump it to lower levels.

Let’s look at charts in detail.

Key points

  • The LUNA chart shows several higher price rejections at $92 resistance
  • The 20-and-50-DMA completed a bullish crossover.
  • The intraday trading volume in the LUNA is $4.6 Billion, indicating a 19.9% loss.

TradingView ChartSource- Tradingview

LUNA price recovery struck down two significant resistance of $61.6 and $77 before it hit the $92 mark. The buyers were attempting to knock out this resistance as well, but the second phase of the Russia-Ukraine negotiation pinned down the underlying bullishness in the market. 

The expected pullback can plunge the coin price to $77 support. However, a follow-up breakdown would threaten another 20% loss ($61).

Furthermore, the LUNA buyers can expect strong support at the confluence of $61 and 50-day EMA, where the bulls could wrest control from the bear.

  • Resistance levels: $92 and $100
  • Support levels: $45.6 and $45

Technical indicator

Negative divergence in the 4-hour-Relative Strength Index (73) supports a bearish reversal from the $92.8.

However, the recovery rally surged above the 20, 50, and 100 DMA’s, indicating the buyers have the upper hand. Moreover, a bullish crossover of the 20 and 50 DMA could strengthen their grip.

About Author
Tags: , , ,

Related Article