Terra’s LUNA Token Looks Bound for a Brief Correction


Key Takeaways

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.

Source: TradingView

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.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

OVR – the largest decentralized AR Metaverse

OVR is the decentralized infrastructure for the metaverse, merging physical and virtual world through Augmented Reality, creating a new dimension where everything is possible. It’s composed of 1.6 trillion unique hexagons…

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 Fantom, 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…



Source

Recommended For You

About the Author: wp4crypto

Leave a Reply

Your email address will not be published.