- Terra's LUNA price loses support from two significant moving averages.
- LUNA price has tagged oversold levels on the Relative Strength Index.
- Invalidation of the bearish trend is a breach above $2.67.
Terra's LUNA price appears to be at the beginning of a developing impulse Elliott wave headed south. Key levels have been defined.
LUNA price may slip back to $2.00
Terra's LUNA price could continue declining as market conditions signal bearish control. On October 17, the bulls lost support from the $2.65 level, which has kept prices afloat throughout the month. The move south was catalyzed by rejecting the 8-day exponential moving average. The decline also breached the 21-day simple moving average with little hesitation.
LUNA price currently trades at $2.53. During the New York trading session, the bears established consecutive bearish engulfing candles. The Relative Strength Index compounds the idea of a stronger decline in the works as the bears have breached through oversold levels.
LUNA/USDT 3-Hour Chart
If market conditions are genuinely bearish, the LUNA price will not be able to reconquer the 8-day EMA as support near the $2.66 level. A continuation of the downtrend could be catalyzed by a second attempt at the recently established low at $2.50. Bearish targets lie near the $2.00 liquidity level.
Invalidation of the bearish trend remains at $2.67. If the bulls do conquer the barrier, they could trigger a bull run toward $5.00, resulting in a 100% increase from the current LUNA price.
In the following video, our analysts deep dive into the price action of LUNA, analyzing key levels of interest in the market. -FXStreet Team