Terra’s (LUNA) selloff is accelerating alongside the broader crypto market. At the time of publication, Terra (LUNA) was exchanging hands at $50.65, down nearly 30% in the last 24 hours and 41.04% since the past week, ranking the worst-performing cryptocurrency among the major altcoins. Amid Terra’s steep selloff, LUNA has fallen out of the top ten ranking 11th largest according to CoinMarketCap cryptocurrency ranking by market capitalization. On Sunday, the price of Terra’s native asset, LUNA, saw a huge drop as UST stablecoin briefly lost its peg after someone dumped $285 million worth of UST tokens on Curve and Binance over the weekend. To forestall future volatility in Terra and Luna, the Luna foundation guard (LFG) council has voted to execute the following which is – Loan $750M worth of BTC to OTC trading firms to help protect the UST peg and also Loan 750M UST to accumulate BTC as market conditions normalize.
Key Levels
Resistance Levels: $75.00, $65.00, $55.00
Support Levels: $45.00, $33.50, $23.62
LUNA/USD Daily ChartAfter failing to return above the MA 200 at $71.50 on May 7, LUNA/USD had a sustained drop of roughly 30%. Today’s sell-off to $43.48 lows has put the price at oversold levels and the $43.49 low of Jan. 31 is now breached and bolstering the case for an attempt on a downtrend. A drop below today’s low of $43.48 could go to the $37.20 support.
If the $43.48 level gives way, the bears may have to break through the $37.20 support level to gain traction towards the $33.50 critical sector. With the RSI indicating oversold circumstances beneath 30, a near-term upside correction or stabilization should not be unexpected. The price may test the $65 support turned resistance if a rebound occurs.
LUNA/USD 4-Hour ChartAfter peaking at $88.18 earlier in the month, LUNA has seen a downward trend. The price also fell below the 4-hour MA 50 which was at $85.50, to lows of $47.02 at the time of this post. More losses might drive the price below $47.02 before it crashes to $45.00. The RSI has plunged below oversold levels of 20, indicating the possibility of a relief rebound.
LUNA may bounce upward again in the short term, facing resistance at $55.00, $60.00, and $65.00 ahead of the 4-hour MA 50 ($75.00), MA 200 ($85.00) before resuming the rise to an all-time high of $119.55. Finally, due to the recent market downturn, the LUNA price has fallen more than 50% from its all-time highs.
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