LUNA Technical Analysis: Look Out for the Strong Resistance Seen at $36.58

Terra offers fast and affordable settlements and uses stablecoins to power a price-stable payment system. Stablecoins are coins that are pegged to fiat currency, such as USDT. Let us look at the technical analysis of LUNA.

Past Performance of Terra

In the last week, LUNA has traded between $27.46 to $36.20. On September 14, it has touched an all-time high of $44.89. However, the price is currently 26.44% down from its ATH.

LUNA Technical Analysis

LUNA is testing its long-term resistance level. A red candle can be seen in the daily timeframe, thus indicating that the market is bearish for the rest of the day. If the price breaks out of this level, it will highlight new resistance levels.

On the daily chart, MACD is just above the zero line. Thus, the following trend that the chart has been making indicates the price to continue in the same trend for a while. The signal line has more potential to cross from below, thus indicating a bullish trend.

Even the RSI has been trading at 54%, just above the equilibrium. RSI has enough potential to go towards the overbought region. RSI has indicated a trend reversal and thus a trader can take a long position from here.

To support these indicators, OBV is predicting the volume flow. Which is very expected to be very high. If the indicators are supported by volume, LUNA can see a breakout from the current zone.

Day-Ahead and Tomorrow

The important level to look out for is the strong resistance seen at $36.58, and LUNA has great potential to test that level. If it breaks this level, it can see a breakout and will highlight the level of $36.71, which will be our next target.

On the other hand, if it retests the support zone near $34.06 and breaks the level, we will assume a bearish trend. Hence, traders can short the position from that level by keeping a target at $30.38.

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