The LUNA price continues to correct from last week’s monster one-day 40% rally to a new all-time high of $46.16. This morning, Terra is down around 10%, bringing the three-day loss to over 20%, which means the LUNA price is officially in a bear market. Although, even in light of the pullback, the LUNA coin is still 550% higher than in July.
Over the last few weeks, the crypto market has experienced mixed fortunes. Bitcoin (BTC/USD) scaled $50k but soon dropped to $44,00. Similarly, Ethereum (ETH/USD) jumped above $4,000 before reversing to $3,000. However, other assets, including Terra (LUNA/USD), surged to fresh all-time highs.
On Tuesday of last week, the cryptocurrency market suffered its biggest shock since the May crash. Bitcoin lost 18%, and Ethereum more than 25% in a matter of hours. As a result, LUNA dropped from $32.76 to $20.88, a 36% intraday loss. However, by the close of play, Terra had pared the loss to 15%. Furthermore, by Friday, LUNA was trading at $46.16, 120% above Tuesday’s low. Although, today, the crypto market is almost universally weaker, and as a result, the LUNA price may be in for a bumpy ride.
Terra Price Forecast
The daily chart shows that LUNA has been trending higher since June. Incredibly, at Friday’s high, the Terra price had gained over 1,200% following May’s collapse. Notably, most of the gains have come in the last few weeks. This has resulted in a 45-degree uptrend forming below the market. The trend line, which is currently seen at $27.00, perfectly aligns with the closing price on the 26th of August to create a robust support level. This is the first target if the price breaks down.
As long as the crypto market is under pressure, the chances that the LUNA price will test support grow. Furthermore, unless Terra advances above Friday’s high, it may lead to worries of a blow-off top. However, above it and the price could extend even higher.
On that basis, the negative view remains intact as long as the Terra price is below $46.16.
LUNA Price Chart (Daily)
For more market insights, follow Elliott on Twitter.