Terra's LUNA price is on the wrong side of a technical level at the worst possible time


  • Terra price action dropped 2% on Thursday's trading session after bad earnings and a disappointing ECB.
  • LUNA Price action currently hangs below a key support level.
  • With big tail risks in the coming days and weeks, LUNA is at risk of turning back below $0.000300.

Terra (LUNA) price action was not a match for the stronger dollar that rolled over into the markets on Thursday as investors had to reshuffle their outlook on the back of some major market-moving events. It was not just one, but a slew of catalysts, with first the ECB not meeting traders' expectations, triggering the first round of dollar strength, followed by a meltdown in the Nasdaq as Meta, Amazon and Apple all disappointed. LUNA price action broke vital support and is now trading at the mercy of the Fed and the US midterms in the coming days and weeks.

LUNA price at risk for at least eleven days

Terra price action has dropped more than 2% in just two trading days, with the current one still not over. Although the earnings this evening will not be big enough to change the direction, and what looks like to be a failure at the $0.000306 support level could not come at a worse time. With the midterms on November 8 and the Fed on November 2, LUNA price action is at the mercy of these two main big events upcoming in the next two weeks.

LUNA Price action lacks the support of that $0.000306 handle that originated from the top on September 02. Although not that 100% technically correct, the 38.2% Fibonacci level at $0.000314 triggered a rejection which now caused the breakdown below $0.000306. There is likely more downside to come as the dollar will strengthen in light of these two main events, translated by LUNA price action residing around $0.000290.

LUNA/USD Daily chart

LUNA/USD Daily chart

Alternatively, a simple bounce could ensue, as some economic data could still trigger a reversal. The possibility of a goldilocks scenario is still on the table should the Fed signal that it will start slowing down its hikes and pulling off a soft landing instead of a recession. In such a scenario, investors would gladly pick up risk assets and see LUNA price action pop towards $0.000330.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Is Altcoin Season here as Bitcoin reaches a new all-time high?

Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.

More Altcoin News
Shanghai court confirms legal recognition of crypto ownership

Shanghai court confirms legal recognition of crypto ownership

A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.

More Cryptocurrencies News
BTC hits an all-time high above $97,850, inches away from the $100K mark

BTC hits an all-time high above $97,850, inches away from the $100K mark

Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.

More Bitcoin News
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange

Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.

More Shiba Inu News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP