Altcoins

LUNA establishes a temporary range but could it slide further down

Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation

LUNA plunged from its all-time excessive at $119.55 on Binance, and it fell beneath the $84 space the place the worth noticed a robust bullish impulse transfer in mid-March. Nevertheless, the bulls would have some rope to carry on to so long as LUNA can keep above the $70.7.

It was unclear if the native token of Terra was in a retracement, or whether or not promoting stress is intense sufficient to drive additional draw back. Bitcoin was simply above the $40k mark, and if BTC drops under $39.2k, concern out there may very well be intensified and drive LUNA to register extra losses.

LUNA- 12 Hour Chart

LUNA establishes a temporary range but could it slide further south?

Supply: LUNA/USDT on TradingView

Previously week, LUNA established a variety (white) from $80.8-$89.2. Nevertheless, it has retested the $87-$89 space as resistance up to now few days. This was a bearish improvement. It hinted that LUNA might retrace additional south.

The Fibonacci retracement ranges had been plotted based mostly on LUNA’s transfer from $47.29-$104.83 the earlier month. It confirmed 50% and 61.8% retracement ranges to lie at $76.06 and $69.27, which have some confluence with longer-term horizontal ranges of significance.

The buying and selling quantity has been falling up to now few days, whilst the worth consolidated. This urged that market members had been ready for impetus in some path earlier than getting into the fray.

Rationale

LUNA establishes a temporary range but could it slide further south?

Supply: LUNA/USDT on TradingView

Each the RSI and the Superior Oscillator confirmed sturdy bearish momentum. The RSI on the 12-hour chart has been unable to climb previous the 40 mark, whereas the Superior Oscillator additionally slipped beneath the zero line.

The DMI additionally confirmed a robust downward development in progress over the previous week, as each the ADX and the -DI (yellow and purple respectively) had been above the 20 mark.

These developments have taken place in response to LUNA’s sharp plunge from $116. The OBV has additionally seen a pullback. But, this transfer south may very well be simply that- a pullback. The OBV continued to stay in an uptrend on a better timeframe.

Conclusion

Was LUNA pulling again towards the $70 mark seeking demand? Was this bearish transfer greater than only a mere retracement? When doubtful, zoom out, the saying goes. So long as $70.6 holds, the bullish bias has some credence. Bitcoin might affect the path of Terra’s token as nicely.

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