Terra (LUNA) – Came under renewed pressures

Terra (LUNA) – Came under renewed pressures

Posted on Thursday, January 27 2022 at 9:15 pm GMT+0000

Terra (LUNA) came under renewed pressures lately and slumped back below the 100- simple moving and the January 8th low of 62.75 rekindling the dominant bearish tone.

As regards the technical indicators, the softened positive slope of the 50-day simple moving average is indicating that the downside sentiment is growing. While its recent bearish cross by the 20-day simple moving average is further endorsing the negative picture. Oscillators on the other side, are promoting further negative price action. The MACD is gliding past both the signal and zero lines and the stochastic lines are retaining a clear negative charge. The ADX is rising and the -DI keeps holding well above the +DI.

For now, the price is expected to stretch the decline initially towards the tough 48.20-47.30 barricade shaped by the 161.8% Fibonacci extension level of January’s upside swing as well as the early December’s low. Slipping deeper, downside limitations could emerge from the multi-tested barrier around 38.50, last visited at the end of November.

On the other hand, if bulls manage to gain command and drive the price beyond the 100-day simple moving average, they will likely challenge the last week’s high and the 70 round number. The nearby falling simple moving averages may act as immediate resistance if the price cracks above the latter.

In brief, Terra bears are expected to extend their dominance, likely stretching the recent downfall towards the 48.20-47.30 region.