Terra (LUNA) – In bearish correction mode
Posted on Tuesday, December 28 2021 at 10:06 pm GMT+0000
Terra (LUNA) has marginally retreated after posting a new all-time high on the 27th of December. Nonetheless, the strong bullish tone in the moving averages continues to sponsor the prevailing uptrend.
The momentum oscillators are hinting that buyers are taking a breather. The MACD, well beyond zero, is losing impetus and seems to head towards its signal line, while the DI+ and the DI- are converging.
Should selling forces strengthen, price should find support at the 5th of December swing high at 80 which overlaps with the 20-day exponential moving average and the 38.2% Fibonacci level. However, should that barrier fail to provide sufficient support, the spotlight will turn towards the 61.8% Fibonacci around 64 aside from which the 55-period moving average resides. The trend line stretched from the November 26 swing low adds further importance to the zone.
On the other hand, should buyers retake full control, they will immediately push for a fresh test of the 106 all-time high. Next, some profit-taking will take place around the 120 and 130 psychological numbers.
Overall, Terra is exhibiting a strong bullish outlook on the medium and long term despite the current minor correction. Traders should be looking for clear reversal signs around the aforementioned support zones to reinstate new long positions.
