The broad crypto market space sustained massive liquidations in Thursday amid comments from Fed, highlighting inflation concerns. The largest crypto crashed to monthly lows, exploring price levels near $42,500.
Terra has encountered massive selling momentum from the $94 mark. The $75-mark might attract LUNA buyers to the market again. However, will this value area translate to price recovery for Terra to surge back to $90 or trigger a temporary rebound?
LUNA Hourly Chart
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Analysts plotted the FIB retracement zones for the short-term Terra fall to $81.1 from $103.6. It presented the 27.2% extension zone at $74.99. The level generally witnesses some price reactions. So LUNA might see a bounce there.
The level also matched LUNA’s early December highs. Therefore, market players can consider the downward move by LUNA a higher level retest of the last supply zone to look for demand. Nevertheless, the confluence forms a bouncing environment for LUNA price. However, some resistance exists near the $78-level.
Reasoning
The Relative Strength Index flashed a higher low as price action forms a lower low. The bullish divergence plus support zone confluence may see Terra on a slight bounce towards $78.2. However, selling momentum might renew at this level, especially with a lower move from Bitcoin.
The Stochastic Relative Strength Index stayed close to the oversold region while the hourly char shows an oversold RSI. That way, the alternative coin might see a bounce, but the range from $78 to $80 might witness massive sell orders.
Final Thought
Terra has been among the resilience alts over the past few months. However, the token has recorded a sharp pullback from its highs around $103. For now, the altcoin seems ready to explore further lows. The latest sell-off had lower timeframes actions on bearish and fearful mode.
Long positions individuals may have to wait for a Bitcoin move past $45,000. Such an uptrend by BTC would strengthen altcoins. Though the LUNA has massive support at $75, timing the accurate local bottom for the token might be a challenging task.
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