- LUNA’s witnesses extended correction at the moment, suggesting further drops – though limited.
- Testing the support floor at $75 would offer a base for a massive move to another ATH.
- Plunging risks persist as weekly chart picture extended condition for the alt.
LUNA has been spectacular in the crypto space. As the global cryptocurrency market consolidated with lows, LUNA surprised market players, defying market conditions, recording its latest all-time high. Nevertheless, the altcoin remains around overbought zones and might suffer more retracement.
Terra Price to Hit Confluence Area of Support before Upside Actions
Terra LUNA remains at risk of deeper retracement movements. The alt had a confluence territory of Ichimoku and FIB levels around the psychological value area at $75. Meanwhile, the weekly Tenkan-Sen at $70.67, 38.2% FIB retracement of $72.63, and daily Kijun-Sen at $76.50 are in the same value range.
Though the Composite Index (CI) on the daily price chart flashes a sharp southward move, it is yet to hit a low. Optex Bands stand around overbought regions, confirming possible downward actions. Moreover, the Relative Strength Index (weekly chart) moves under the initial overbought territory within a bullish market (80).
For now, a correction towards $75 will emerge for long-term buyers when the daily Composite Index displays a low beneath the 13 December Composite Index mark. That would result in a concealed bullish divergence, while Terra stands in a helpful and massive confluence area.
LUNA’s failure to keep $75 as its support area might trigger a dip towards the next support floor around the $55 mark. Meanwhile, Senkou Span B, 61.8% FIB retracement, and weekly Kijun-Sen share the $55 range.
Meanwhile, cryptocurrency assets decline after massive rallies. LUNA had defied plunging market conditions, printing new ATHs as other tokens battle with bearishness. For that reason, the contemplated plunge is not a surprise to analysts. The best thing is that Terra will secure dependable footing to support the upcoming rally.
For now, the broad market remains in the red. While publishing this content, Bitcoin traded below the $47K barrier, wavering at $46,687. Such outlook weighs on the alt market, translating to downward actions. Nevertheless, experts believe a monstrous rally is in store for the coming year.
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