Lorenzo Stroe
Independent Analyst
- Terra price is contained inside an ascending broadening wedge on the 4-hour chart.
- The digital asset must stay above a key support trend line to avoid a significant dip.
- LUNA bulls face weak resistance on way up, but correction could still be underway.
Terra price has been trading somewhat sideways in the past several days after a significant correction from its all-time high of $22.4. After the release of a new stablecoin yield protocol on the Terra blockchain, LUNA suffered a classic “buy the rumor, sell the news” event, dropping to a low of $15.6.
Terra price must hold critical level for 8% upswing
On the 4-hour chart, LUNA has formed an ascending broadening wedge with a critical support trend line established at $18.2. LUNA buyers defended this level several times in the past four days, which means it is a vital support point for the bulls.
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LUNA/USD 4-hour chart
Successfully defending this level again should lead the Terra price into a rebound toward the upper trend line at around $20. There is weak resistance ahead for LUNA.
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LUNA/USD 4-hour chart
On the other hand, a loss of the key support level at $18.2 would lead LUNA into a significant breakdown toward $16.7. However, the digital asset could even fall to the next support level at $15.7.
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