Terra Luna Price Has Formed a Triangle Pattern. Is it a Good Buy?
New York, USA - 1 May 2021: Terra LUNE cryptocurrency logo close-up on website page, Illustrative Editorial
The Terra Luna price has moved sideways in the past few days as demand for the coin waned. The coin is trading at $0.00010, which is slightly below this week’s high of $0.00011. In addition, its market cap has dropped to about $245 million, which is remarkably lower considering that the coin was once valued at over $40 billion, making it a top-ten coin.
Is LUNA a good buy?
Terra LUNA price has risen from its June low in sync with the performance of other cryptocurrencies. This year, it has jumped by more than 140% from its lowest level. The rebound was mostly because of the strong performance of cryptocurrencies. Bitcoin rose to $24,000 while Ethereum jumped to above $1,500. Indeed, it is hard to identify a coin that has not bounced back in the past few months.
Still, Terra will likely be incredibly hard to bounce back in the long term. For one, the developers have already lost trust of the development community. Indeed, many developers who had projects in Terra have now moved to other platforms like Polygon.
Developers who remain will struggle gaining traction among ordinary users because of the memory of the recent crash. Therefore, in my view, I believe that LUNA is not a good investment for long-term investors because of the substantial risks in the network. Besides, its developers like Do Kwon are being investigated in South Korea and the US.
This is not to say that LUNA will continue falling. Indeed, for a thinly traded asset, there is a high possibility that it will often have pump and dumps.
Terra LUNA price prediction
The three-hour chart shows that the LUNA price has consolidated in the past few days. As a result, the coin has formed a triangle pattern that is shown in green. It is also hovering at the 25-period and 50-period moving averages.
Therefore, with the triangle pattern nearing its confluence level, there is a likelihood that it will have a breakout in the near term. While it is hard to predict, I suspect the coin will have a bearish breakout as sellers target the next key support level at $0.000085. However, a move above the resistance level at $0.00011 will invalidate the bearish view.