Terra Price Prediction: LUNA bulls overshoot, 20% downswing likely

  • Terra price rallied 56% over the past six days and tagged a resistance level at $8.769.
  • Rejection at this zone has already begun and is likely to extend by 20% to $6.447.
  • A decisive 4-hour candlestick close above $10.101 will invalidate the bearish thesis.

Terra price has been on a constant uptrend since it bottomed on June 22. As LUNA comes exceptionally close to the high probability reversal zone, it is likely that a reversal will ensue.

Terra price might create equal highs before heading lower 

Terra price surged 91% since June 22 and 56% since July 5, showing massive buying pressure. While this uptrend paints a bullish picture so far, the recent retest of the high probability reversal zone, ranging from $8.769 to $10.101, indicates that a retracement is likely.

Although the run-up from $5.604 to $10.101 was steady, it was without significant corrections. Therefore, investors can expect a pullback that might push LUNA to breach $7.456, $6.447 and tag $5.954. If this move were to occur, it would be a 20% retracement from the current level – $7.924.

In some cases, Terra price might even set up an equal low at $5.592, the July 5 swing low and consolidate here before establishing a new bias.

LUNA/USDT 4-hour chart

LUNA/USDT 4-hour chart

While a retracement seems logical after such an elongated run-up in a choppy market, a potential spike in buying pressure could delay or offset the downswing.

Although a retest of the 70.5% Fibonacci retracement level will hinder the bearish argument, if the bulls shatter the 79% Fibonacci retracement level at $10.101, it will invalidate the bearish thesis and trigger a run-up to the range high at $11.747.

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

Uniswap price eyes 20% upswing if UNI can clear this crucial barrier

Uniswap price is on a journey to retest $25 after the recent downswing. On-chain metrics hint at smooth sailing ride apart from the massive resistance at $20.84. A daily close below $17.75 will invalidate the bullish thesis.

More UniSwab news

Three major overlooked factors why Ethereum price is about to skyrocket

ETH price has been consolidating after the cryptocurrency registered a new all-time high on November 10. A few factors suggest that the token may be preparing for a massive take-off. 

More Ethereum news

Solana price to trigger a 15% upswing as SOL retests crucial support level

Solana price appears to be making a comeback after it slipped into a steep correction since its all-time high on November 7. This downswing has stopped after retesting a crucial support level and is on a journey to head higher.

More Solana news

Crypto exchange Kraken lists Shiba Inu, kickstarting SHIB price recovery

Leading cryptocurrency exchange Kraken announced that it will support the popular meme-based token Shiba Inu starting November 30. The digital asset trading platform has already begun accepting deposits of SHIB.

More Shiba Inu news

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!