Terra primed for profit-taking following LUNA's all-time high
|- Terra price is eyeing a correction after rallying 73% in roughly five days.
- LUNA is due for an 18% pullback to retest the $51.68 support level.
- A daily close above $68.94 will invalidate the bearish thesis.
Terra price looks ready for a minor correction after setting up a new all-time high. The recent rally has pushed LUNA up without a major pullback, making the anticipated retracement highly likely.
Terra price prepares for a minor downswing
Terra price rallied a whopping 73% in less than six days, starting at $37.77. This run-up pushed LUNA to a new all-time high at $65.60. As impressive as this rally is, during the climb, Terra price did not witness any major downswing.
From a bigger picture perspective, LUNA saw an exponential run-up, which is why investors can now expect a correction to follow. So far, Terra price has dropped 6% to where it currently trades - $62.05,
An increase in profit-taking is likely to knock this altcoin down to the immediate support level at $59.71. If this level fails to hold, LUNA will slide lower and tag the following barrier at $55.21. This move would indicate an 11% correction for Terra price from its current position.
Market participants should expect the bears to dig deeper, however, and retest the 50% retracement level at $51.69. This 17% downswing is where buyers are likely to step in and try to cauterize the wound. If bulls fail to make a comeback, there is a high chance interested investors are still biding their time, waiting for further discounts before jumping in.
Terra price could find massive support and potential reversal around a buy zone, ranging from $43.61 to $48.44.
LUNA/USDT 4-hour chart
While things are looking ready to crumble for Terra price, there is still the possibility things could turn around more rapidly and see a spurt of buying that propels LUNA to pierce through its range high at $65.61. Such a move would confirm bulls were on top. and push the altcoin to tag the 161.8% Fibonacci extension level at $68.94.
If Terra price produces a daily close above this barrier, it will create a higher high and invalidate the bearish thesis.
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