Wednesday, May 18

Terra (LUNA) cryptocurrency is falling hard. Find out where it’s going here

After rising for 6 continuous months, almost completely disassociating itself from the crypto market, now the Terra (LUNA) cryptocurrency is pulling back strongly, and to find out where it is headed, we carry out an analysis and forecast below.

At the time of writing, LUNA is trading at $49.15, accumulating a loss of 9.25% in today’s session and 31.54% in the last 7 days.

Its market capitalization is $19,795 million, which is why it ranks 9th in the Crypto Online ranking.

Terra is a blockchain protocol that uses stable cryptocurrencies linked to fiduciary currencies, to feed the different payment systems worldwide. Its native token, LUNA, serves to stabilize stablecoin prices, and to participate in platform governance proposals.

In addition, the speed of this blockchain, low fees and the ability to run smart contracts have made it one of the most attractive for hosting decentralized applications, better known as DeFi.

Today $13.32 billion in DeFi applications are locked within this platform, with quite relevant protocols within the crypto ecosystem such as Anchor or Lido.

The position it occupies today in the crypto ecosystem assures us that the success of this project has been resounding. But what can we expect from the price of LUNA during the next weeks/months, let’s find out with the following analysis.

Terra Cryptocurrency Technical Analysis (LUNA)

On the daily chart LUNA vs USDT we see a clear short-term downtrend, made up of lower lows and higher highs.

The 8-day EMA and 18-day SMA follow this trend, and are currently quite far away from the price, so it is quite likely that a respite to the upside is in the offing. However, currently a pullback would simply be to pick up supply and fall again.

Terra cryptocurrency has clear ground to $44.19, so it may look to touch that price before attempting to pull back higher. There you should also try to hold the 200-day SMA, which tracks the medium/long-term trend; if it loses it, then the bearish scenario could be more worrying.

Technical analysis of the Terra cryptocurrency, LUNA vs USDT daily chart.  Source: TradingView.
Technical analysis of the Terra cryptocurrency, LUNA vs USDT daily chart. Fountain: TradingView.

The correction could still extend considerably more

From the monthly chart of the Terra (LUNA) cryptocurrency, we see that the price is making a necessary pullback, after a mega bullish rally.

From the all-time high of $103.60, the price has retraced 51.71%. Now LUNA is approaching the 8 period EMA where it is likely to gain support and resume its big uptrend.

However, there are still not many signs that the pullback is about to bottom out.

Should the EMA be broken through, then the price is likely to look to fall further, perhaps towards the 18-period SMA (small red line on the chart below) around $25.

If we use Fibonacci to look for possible reversal points, Terra (LUNA) is approaching 61.8%, where it may well end the corrective process. But if it loses it, then we may see price looking for the 78.6% to 88% zone before resuming the larger uptrend.

All our publications are for informational purposes, so in no case should they be accepted as investment advice.