Terra (LUNA) has been falling sharply since Could 9 and has to date reached a low of $4.12. That is the bottom value since early 2021.
LUNA has been falling since reaching an all-time excessive of $119.55 on April 5. The lower rendered that the breakout above the $105 horizontal space was solely a deviation (purple circle). The lower was additionally preceded by bearish divergence within the weekly RSI (inexperienced line).
The downward motion accelerated in the course of the week of Could 9 to 16. Up to now in the course of the week, the worth has decreased by 91%.
At present, it’s buying and selling contained in the $6 horizontal space, which has not been reached since June 2021.
Cryptocurrency dealer @blurcrypto tweeted a chart, which exhibits that the worth has decreased by greater than 50% in a single day.
Because the tweet, LUNA has resumed its descent and reached a low of $4.40.
Will LUNA bounce?
The each day chart exhibits no clear bullish reversal indicators. Nevertheless, the each day RSI is probably the most oversold it has ever been, reaching a low of 15.
Equally, the two-hour RSI reached its all-time low of 9 on Could 10, and is now probably producing some bullish divergence.
Nevertheless, the divergence shouldn’t be but confirmed and could possibly be invalidated if the worth continues falling.
The wave rely means that LUNA is mired in a really steep five-wave downward motion, of which it’s in wave three (black). The sub-wave and minor sub-wave counts are given in purple and white, respectively, within the chart beneath.
Because of the sharp drop, using the 15-minute chart is required with a view to visualize the worth motion.
Whereas a big bounce may happen quickly, the wave rely means that the complete lower shouldn’t be but full.
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