Crucial Support in Sight as New Lows are Tested

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LUNA/USD has struggled the past day and is again approaching important support levels as traders may be rather suspicious and more nervous about its value.

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LUNA/USD is trading slightly above the 48.00000000 level as of this writing. Terra has seen an incremental bearish trend continue, one which has not always worked in lockstep with the broad cryptocurrency market, but remains a rather strong reflection regarding overall nervous sentiment.

On the 31st of January, LUNA/USD was trading above the 53.00000000 juncture and seemed to offer hope that a renewed amount of buying vigor could be generated, but the reversal higher has seemingly run of steam for the moment. Intriguingly, before achieving that short-term high, LUNA/USD was suffering from a rather swift selloff and actually traded near a low of 43.000000000 only hours before.

This low water mark in fact penetrated lows seen on the 28th of January when LUNA/USD traded below the 48.00000000 mark. These dates are interesting technically, because the lows for Terra were achieved in a manner that did not reflect the broad cryptocurrency market fully. Lows for the major counterparts of Terra were mostly seen on the 23rd and 24th of January.

The sequence of timing is highlighted for speculators who are technically inclined to underscore that LUNA/USD doesn’t react instantly to the results of other cryptocurrencies, meaning its behavioral sentiment is slightly different. However, the lows reached early today and yesterday continue to serve notice that a bearish trend remains a fixture of LUNA/USD. Intriguingly, the lows produced are only touching support which was last seen in November of 2021. On the 20th of September, LUNA/USD was trading near the 24.00000000 juncture.

In late December of 2021, LUNA/USD was able to trade above the 100.00000000 level, and since then Terra has lost more than half of its value. Speculators who believe LUNA/USD has been oversold and insist on buying positions are cautioned to practice risk taking with extreme care. Not only is Terra within a rather strong bearish trend, but its trading volume is often light which makes it vulnerable to rapid changes of values.

Traders who want to continue to sell LUNA/USD cannot be blamed. If a short-term wager is decided upon, it is suggested that a speculator use an entry order to make sure their price fill meets expectations. A trader may want to wait for a slight uptick from LUNA/USD which approaches short term resistance to ignite their selling positions. Traders should remain realistic with their goals and using support levels which are not overly ambitious may produce the best results for quick hitting results.

Terra Short-Term Outlook

Current Resistance: 50.46000000

Current Support: 45.95000000

High Target: 56.5500000

Low Target: 42.15000000

LUNA/USD

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