Terra price recently went through another minor correction that brought the price down to the new support level of around $80. The drop of about 21% was seen as an opportunity by many crypto money investors and met with intense buying demands. At the time of writing, despite the withdrawal of Bitcoin, LUNA remains strong.
At the time of writing, LUNA continues to find buyers for around $92. The $80 region turned into strong support, although the price struggled a bit at $78.5. The ascending bullish foundation strengthens the possibility of LUNA returning to the $103 levels.
Major EMAs (20, 50, 100 and 200) maintain bullish order on the daily timeline chart. Also, the 20 and 50 EMAs offered strong support during minor pullbacks. The daily Relative Strength Index (63) draws attention from buyers as it tries to approach the overbought territory.
Terra (LUNA) Price Analysis
The four-hour chart shows the formation of an ascending wedge pattern. Although this pattern leads to a bullish rally, it poses a significant threat to selling when the price falls from the support trendline. Having said that, crypto traders can continue to look bullish until the price stays above the $80 support.
Based on the traditional pivot level, LUNA traders will try to test the $102 and $114 resistance zones. Support levels for any dip are seen at $91.5 and $79.3. Investors’ upward expectations may not always be realized. Therefore, they can at least have the opportunity to reduce their losses by setting stop losses in critical support areas.
With increased use of UST, it is hoped that the LUNA price will continue to rise in the long run. Stablecoins will face a strong regulatory test this year. If the US does not impose strict rules and ban decentralized stablecoins, more investors may turn to decentralized dollar-denominated tokens like the UST. In this case, the LUNA price will have the opportunity to move its triple-digit targets higher. Of course, predictions and assumptions do not give you any definite predictions about the future. Therefore, it can hurt you to shape your investments according to what you read.