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Price Analysis

LUNA Prices cooling after a 10X, Terra Bulls Find Resistance at $40

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LUNA is shoulder-to-shoulder with Uniswap at the time of writing.

At one point, it flipped the world’s largest DEX to be the most valuable DeFi token in the space.

Still, their valuation would fluctuate as the war of supremacy rages on.

Terra Fundamentals, Performance, and Price Status

All the same, what we now know is that weaving stablecoins with the blockchain to create a payments system is powerful. It is more so considering just how useful stablecoins are already to crypto and blockchain.

If anything, crypto wouldn’t have expanded to the current valuation, wasn’t it for the tempering and re-assurance of stablecoins. Terra is one more using stablecoins but in a next-generation trustless blockchain to build a reliable eCommerce platform powered by its LUNA coin.

At the time of writing, LUNA commands a market cap of $14.6 billion. It is the second most valuable project after Uniswap.

LUNA buyers are still in contention, though with waning upside momentum. For example, after dropping to 2021 lows in late May, LUNA prices soared 10X to September 2021 highs.

LUNA Protocol Daily Price Chart for October 19

The current cool-off is, therefore, from a technical perspective, understandable. Often rapid gains can be followed by protracted periods of sideways movements or market dumps forcing out weak hands.

The LUNA/USDT is now correcting from recent peaks, dropping roughly 27 percent from October highs.

Presently, LUNA prices are consolidating inside a tight $6 range zone with caps at $34 to the lower end and $40—and the middle BB–to the upside.

A break in either direction would define the short and medium-term trend.

The “Bat-Man” is Here, LUNA May Recover to $45

According to one trader on Trading View, there is the Bat pattern evident in the 4HR chart, signaling the presence of buyers.

LUNA back to $40

Bullish as the analyst is, he nonetheless calls for caution, urging traders to wait for a more precise entry above the descending line in a bullish breakout formation.

As mentioned earlier, LUNA/USDT prices are in range. Therefore, in the trader’s view, a close above $40 would be the basis for a lift-off towards $40 and later $44.

Conversely, if sellers flow back and LUNA drops below immediate support at around $34, the uptrend would be nullified.

LUNA Poised for a “Big Move”

It is the position of another trader on Twitter who predicts LUNA prices to rally in the sessions ahead. However, for this pattern to remain valid, prices must hold at spot levels above $34.

The follow-through uptrend above the immediate liquidation line would provide rocket fuel for Terra buyers angling for a retest of recent highs above $45.

50-Day Moving Average offers Support for LUNA

On YouTube, Ryan Provan thinks prices are bullish from a top-down approach.

However, Terra prices are tethering close to a critical support line offered by the 50-day moving average at around $34.

LUNA prices may drop below the recent consolidation if sellers have the upper hand, pushing Terra prices lower.

Charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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