• Terra’s LUNA retracement is still in the works, further downside pressure likely – but limited.
  • A test of $75 as support would provide structure for a move towards new all-time highs.
  • Downside risks remain as LUNA is extended on its weekly chart.

LUNA price has been a significant leader in the cryptocurrency world. While the broader cryptocurrency market has been consolidating or treading water near significant lows, LUNA has been a surprising bright spot with its recent new all-time highs. However, it remains near overbought levels and could risk a deeper retracement.

LUNA price to test a confluence zone of support before making any further upside moves

LUNA price remains under threat of a deeper corrective move. There is a confluence zone of Ichimoku and Fibonacci levels near the psychological $75 value area. The daily Kijun-Sen ($76.50), 38.2% Fibonacci retracement ($72.63), and the weekly Tenkan-Sen (blue horizontal line at $70.68) all share the same price range.

While the Composite Index on the daily chart shows a very sharp move south, it is not yet at a low. The Optex Bands remain near overbought levels, indicating further downside pressure is likely. Additionally, the Relative Strength Index on the weekly chart is just now moving below the first overbought level in a bull market (80).

Ideally, a pullback to $75 would occur for long-term bulls while the daily Composite Index prints a low equal to or below the December 13 Composite Index level. That would create hidden bullish divergence while LUNA price is positioned in a supportive and robust confluence zone.

LUNA/USDT Daily Ichimoku Chart

If $75 fails to hold as a support zone, the next likely support area is near the $55 value area. The weekly Kijun-Sen (red horizontal line), 61.8% Fibonacci retracement and Senkou Span B share the $55 price range.


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 Join Telegram

Recommended content

Recommended Content

Editors’ Picks

What Shiba Inu price needs to do to trigger a breakout

What Shiba Inu price needs to do to trigger a breakout

Shiba Inu (SHIB) price is seeing a bit of a pullback and could drop even further in search of support after bulls failed to keep their act together during the recent rally and began grasping at early profits. 

More Shiba Inu News

Former Ripple CTO is dumping millions of XRP, traders beware

Former Ripple CTO is dumping millions of XRP, traders beware

XRP price shows promise that it is ready to trigger a massive run-up as the first half of the year comes to an end. There are three reasons why investors should be bullish on Ripple.

More Ripple News

Is Cardano’s Vasil hard fork a ‘sell the news’ event?

Is Cardano’s Vasil hard fork a ‘sell the news’ event?

Cardano price looks like it will face a massive amount of selling pressure that could lead to choppy price action. However, the fundamental side of things looks good for ADA considering the recent update regarding the highly anticipated Vasil hard fork.

More Cardano News

New sources affirm USDD is on a path to collapse like Terra’s UST

New sources affirm USDD is on a path to collapse like Terra’s UST

Tron launched its stablecoin USDD in May, at the same time as Terra’s sister tokens LUNC (formerly LUNA) and UST were imploding. The stablecoin recently detached from its $1 peg, sparking fears of a crash. 

More Terra News

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin: Everything you need to know about BTC 200-week MA

Bitcoin price has gone through turbulent times over the last few months. From reaching a new all-time high to hitting yearly lows and revisiting levels since 2020, the crypto markets have been extremely volatile.

Read full analysis