Terra remains under strong selling pressure, LUNA to hit $75
|- Terra’s LUNA retracement is still in the works, further downside pressure likely – but limited.
- A test of $75 as support would provide structure for a move towards new all-time highs.
- Downside risks remain as LUNA is extended on its weekly chart.
LUNA price has been a significant leader in the cryptocurrency world. While the broader cryptocurrency market has been consolidating or treading water near significant lows, LUNA has been a surprising bright spot with its recent new all-time highs. However, it remains near overbought levels and could risk a deeper retracement.
LUNA price to test a confluence zone of support before making any further upside moves
LUNA price remains under threat of a deeper corrective move. There is a confluence zone of Ichimoku and Fibonacci levels near the psychological $75 value area. The daily Kijun-Sen ($76.50), 38.2% Fibonacci retracement ($72.63), and the weekly Tenkan-Sen (blue horizontal line at $70.68) all share the same price range.
While the Composite Index on the daily chart shows a very sharp move south, it is not yet at a low. The Optex Bands remain near overbought levels, indicating further downside pressure is likely. Additionally, the Relative Strength Index on the weekly chart is just now moving below the first overbought level in a bull market (80).
Ideally, a pullback to $75 would occur for long-term bulls while the daily Composite Index prints a low equal to or below the December 13 Composite Index level. That would create hidden bullish divergence while LUNA price is positioned in a supportive and robust confluence zone.
LUNA/USDT Daily Ichimoku Chart
If $75 fails to hold as a support zone, the next likely support area is near the $55 value area. The weekly Kijun-Sen (red horizontal line), 61.8% Fibonacci retracement and Senkou Span B share the $55 price range.
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