Terra’s LUNA wiped out more than $11bn of investor’s fortune over the past 24 hours. While publishing this content, the token hovered 71.1% down from its all-time high. The fear about UST losing the dollar tie and Binance stopping LUNA and UST withdrawals contributed to the massive bearish move by Terra.

The monstrous 24hr trading volume surge sent the price towards the 78.6% FIB support. A potential reversal could now meet hindrance at $33. While writing these lines, LUNA traded around $31.98, losing a staggering 45.62% within the previous day.

LUNA Daily Timeframe

LUNA formed an evening star candle pattern (since hitting its ATH), slumping to test 9-month trend-line support (resistance now). A breach beneath the trend-line empowered sellers to catalyze a drop under the crucial 38.2% FIB support.

LUNA witnessed a massive bearish engulfing candle over the previous day that dragged the token down towards the 78.6% baseline. Also, the downward move pushed LUNA well below Bollinger’s lower band.

The 20 Exponential Moving Average extended its southward journey as bears broke the low volatility period. Remember, falling under the 200 Exponential Moving Average would see the alt entering a long-term plunging phase.

The resistance at $33 ensured lucrative liquidity for the token to experience friction within this area before trend committal actions showcase.

The alt witnessed a more than 190% 24hr trading volume surge with bulls attempting to recover past losses. A closing beyond $33 would open the door for LUNA to test $38, then $50 in the up-and-coming days.

Reasoning

Amplified selling strength saw bears fragging the Relative Strength Index toward 19. A gradual revival from the record lows appeared possible in the upcoming sessions.

Nevertheless, the on-balance volume formed higher highs within the last week. That led to a bearish divergence with LUNA price on the daily chart. Any OBV slowdown might catalyze a downfall in the near term.

Final Thought

Considering the aggressive oversold conditions on LUNA RSI and BB, the token boasts recovery possibilities in the upcoming days. Meanwhile. OBV threats might spoil the party, delaying the bullish endeavors. Meanwhile, traders should watch Bitcoin’s actions since they might impact overall market sentiment.

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