warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.
- Terra’s LUNA fell back into its bearish shackles after bouncing off trendline resistance.
- Crypto’s social dominance was marked by a downtrend while diverging with price action.
terrace The collapse in May 2022 pushed the prize to ruin. However, the recovery efforts in recent months have created a psychological support level in the minds of investors in the range of 1.5 – 1.7 dollars.
Here is AMBCrypto’s price prediction for Terra [LUNA] for the year 2023-24
For more than four months, LUNA struggled to find a convincing close above the $3.09 level. The recent decline in price action confirmed the six-month trend line resistance (white, dashed) on the bearish edge. The currency may see an ongoing setback in the short term before rallying in the upcoming sessions.
At press time, LUNA is trading at $2,4303, down 4.94% in the past 24 hours.
LUNA entered a shaky position after reversing from trendline resistance
After the expected buyback from the baseline $1.5 from all-time lows (after the crypto revival) on August 29, LUNA regained some bullish momentum, but trend resistance reduced the buying impulse.
After testing this resistance several times, the bears cut short the very long uptrend. Altcoin has once again entered its long-term volatile range and has taken a sideways trajectory. Meanwhile, the 20 EMA (red) and the 50 EMA (cyan) refused to complete a bullish cross.
The recent bearish recovery from the 50 EMA resumed its decline towards the three-week LUNA support in the $2.4 region. A possible drop below this support level would put LUNA to test the $1.7-$1.9 range.
On the other hand, a possible or immediate recovery from above the $2.4 level should help buyers to retest the long-term trendline resistance. A close above this barrier may indicate a catalyst for entry.
In addition, the Relative Strength Index (RSI) fell below its mid-line to show a shift in momentum against the sellers.
The decline of social domination
Since the redemption effort has been achieved by achieving some stability in its price, LUNA has been closely linked to its own social dominance metrics.
Over the past three weeks, the price has diverged with the social dominance line heading south. Should price action follow, LUNA may see a short-term reversal before a possible recovery.
Finally, investors/traders need to keep a close eye on the movement of Bitcoin. The latter could affect the broader market sentiment.