Terra (LUNA) – Long-term bearish structure is still unharmedPosted on Thursday, February 24 2022 at 7:57 pm GMT+0000
After a couple of sessions of upbeat performance, Terra (LUNA) seesawed amid panic mode arising from the recent geopolitical developments, while still struggling to secure a daily close above February 7th resistance at 60.66.
On Wednesday the price failed to conquer the 100-day simple moving average then shifted lower, and barely returned inside the bearish channel stretched from the ATH back in November. The recent negative intersection between the 50- and 100-day simple moving averages is suggesting that the recent positive thrust off the January 31st low didn’t hurt the prevailing bearish structure. Moreover, momentum oscillators are signaling that positive pressures are somewhat fading. Both the ROC and Momentum indicator appear unable to hold above their neutral thresholds.
Therefore, following a decisive daily close inside the channel, the price will likely dive as low as last Sunday’s low at 47.50, or even lower to meet the January 31st bottom at 43.40. An extension below the latter will likely activate a fresh bearish wave towards the November 26th low at 37.40, and the return line of the channel.
Alternatively, if the price holds above the channel, it will first need to clear the 50 and 100-day simple moving averages at 61.20 and 64.75 and the neighboring January 23rd top at 70.50, to crawl towards the January 15th high at 87.90, overlapping with the target of the channel.
To sum up, despite the recent bounce, the long-term bearish structure is still unharmed as the price is still holding beneath key resistance lines, and a decisive close inside the channel will trigger fresh selling. Only a jump above 70.50 could open the door for further upside corrections.