The Terra price is taking no prisoners and continues its relentless march higher. However, LUNA may have just hit a roadblock. Terra (LUNA) is trading at $50.91 (+7.02), up around 18% in the last 7-days and 7,300% year-to-date. Terra’s market cap has edged above $20b, ranking it the 12th-largest cryptocurrency ahead of Avalanche (AVAX).
Stable-coin Protocol Terra has been one of the clear winners in 2021. The LUNA token, like many altcoins, started the year well, peaking just above $20 in March before collapsing to $3.60 in May. The Terra price then flat-lined in June before exploding in July. Between the 20th of July and today, LUNA has gained an astonishing 900% making it one of the best performing blue-chip altcoins. As a result, Terra has followed the likes of Solana (SOL), Ethereum (ETH) and set a new record. However, the price just ran head-first into long-term trend resistance, which could put the brakes on the rally for the time being.
The daily chart shows LUNA reached a high of $54.22 this morning, almost perfectly tagging trend resistance at $54.30 before retreating to $50.60.
As a result, I consider the trendline to be a significant obstacle in the near term. In my opinion, this morning’s rejection lines up a return to trend support at $41.90, around 18% below the last trade. Notably, the 50-day moving average sits just below the trend line, which should reinforce its support. On that basis, I expect dip buyers to emerge on an extension towards support.
I expect the unfavourable scenario to play out as long as LUNA remains below trend resistance. Subsequently, a daily close above $54.30 invalidates the bearish thesis.
For more market insights, follow Elliott on Twitter.
This article was originally published on InvestingCube.com. Republishing without permission is prohibited.
This post was last modified on Nov 05, 2021, 12:58 GMT 12:58