Terra (LUNA) – Found footage at the 50-day simple moving averagePosted on Tuesday, December 14 2021 at 8:29 pm GMT+0000
Terra (LUNA), the open-source stable coin network, witnessed a sharp drop in the last few days after trying to retest its all-time high. However, the overall outlook for LUNA remains bullish as the price found footage at its 50-period simple moving average in its ascending channel stretched from early August.
Meanwhile, momentum indicators are pointing towards a potential deeper correction. The MACD has crossed below its red signal line and the DI+ has dived under the DI- and might be setting the stage for a bigger rectification.
If that is the case, initial support might emanate from the 26th of October swing high at 46. If the price dips beneath that level, then the next obstacle for sellers to clear will be the channel lower trendline. Breaching this support line could damage the current bullish structure and send the price towards the 23rd and 26th of November swing lows at 37 or even deeper, all the way reaching the 21st of September swing low at 24.
Otherwise, if bulls manage to regain full control, immediate resistance could arise at the return line of the bullish channel around the 66 level. Clearing this hurdle would reinforce the resumption of the uptrend, setting the stage for a tougher battle around the all-time high recorded at 78.