• LUNA price moves below key Ichimoku support levels.
  • Bears could push LUNA price lower by -67.1%.
  • Critical support zones below must hold for bulls to maintain an uptrend.

LUNA price action today has experienced the same dramatic and bearish moves as the broader market during the Tuesday trading session. The current LUNA price moves are certainly the most bearish to happen since the $11 breakout above the Ichimoku Cloud on July 28, 2021. The $18 to $20 value area is the last support zone before bears take over and push LUNA down to at least the $11 value area. 

LUNA support under threat

LUNA has dropped below two key Ichimoku levels on the daily chart: the Tenkan-Sen ($29.49) and the Kijun-Sen ($26.68). Below those daily support levels are the weekly Tenkan-Sen ($21.38) and weekly Kijun-Sen ($20.46). Bull may find support against either the weekly Tenkan-Sen or Kijun-Sen if the Relative Strength Index (RSI) remains between the two oversold levels in a bull market: 40 and 50. The support at the $20 value area is further enhanced if the Composite Index moves at or below the low of July 20 (-13.60), creating hidden bullish divergence. 

LUNA/USDT Daily Chart

Bulls should be cautious of any weakness below the $18 value area though. There is a high volume node present between $17 and $18. Below that high volume node is a massive volume trough in the volume profile. The 2021 VPOC (Volume Point-Of-Control) is at $6 and has not been tested since LUNA broke above that prior congestion zone.

Any move below $18 could generate another flash crash to the next support zone in the Ichimoku system, which does not occur until the $10-$11 value area. The daily Senkou Span A and Senkou Span B, as well as the weekly Senkou Span B, all exist within the $10 - $11 range, creating a solid support zone and a likely area for bears to target. This is also a value area where prominent institutional participants may fill their order books and accumulate.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Shiba Inu enters 96% bull run as whales continue accumulating SHIB

Ethereum whale bought $11.5 million worth of SHIB tokens on Tuesday. Shiba Inu token has reached 783,739 holders, large wallet investors accumulate SHIB tokens through the dip. SHIB was briefly the cryptocurrency with the largest turnover on exchanges Binance and Coinbase on Monday.

More Shiba Inu News

Three reasons why MATIC price will breakout to a new all-time high at $4.5

MATIC price breached a crucial resistance level that has prevented it from rallying four times over the past four months. The recent attempt seems to have an extra oomph behind it, hinting that this run-up could trigger a massive move.

More Polygon News

XLM price eyes 55% breakout if Stellar bulls can flip one crucial barrier

XLM price has been stuck trading under a crucial blockade for nearly five months. The situation is set to change soon, however, as Stellar coils up for an explosive breakout.

More Stellar Lumens News

Terra's Do Kwon files lawsuit against SEC while analysts turn bullish on LUNA

Do Kwon, Terraform Labs CEO, was served a subpoena by the SEC while appearing at Messari's Mainnet conference. According to Do Kwon and Terraform Labs' lawsuit against the SEC, the regulatory agency lacks jurisdiction over the plaintiffs. 

More Terra News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast