In a tough market context where Bitcoin struggles to recover from its latest failure below the $46,000 resistance, one cryptocurrency stands out from the rest. Terra (LUNA), as it is this asset we are talking about, embodies a crypto ecosystem founded by South Korean company Terraforms Labs, and is currently part of the top 10 largest cryptocurrencies.
In addition, the latest technical analysis confirms that the bull run since the March 2020 lows remains intact. Following a legitimate consolidation after the last ATH on April 5, and despite the current ups and downs in the financial markets, could the recent rebound we see predict new all-time highs?
This analysis of the LUNA price is brought to you in collaboration with the Coin Trading and Its Algorithmic Trading Solution finally accessible to individuals.
LUNA largely dominates BTC
Before going through LUNA’s technical analysis on the different time units, it is always instructive to measure its balance of power against the king of cryptos. And it’s clear we have to do it a topper of the first order.
The chart above certainly shows broad dominance of LUNA over BTC due to an uptrend characterized by progressively higher highs and lows. As far as the last resistance would be broken, the momentum of its bull run is not ready to stop. Conversely, we could see the beginning of a loss of momentum if the first approaching support breaks.
Terra (LUNA) – A nice margin of safety at the top in weekly units
As Bitcoin Struggles to Detach Itself From Its decently (horizontal channel) between the $46,000 resistance and the $34,000-35,000 support since late January, the contrast is striking on LUNA’s weekly price chart. In reality, these have settled comfortably in a bullish channel dating back to the week of August 16, 2021. Especially since their positions against the various Ichimoku curves encourage investors to calm down.
First of all, the prices of LUNA and the Chikou Span are well above the Kumo (cloud). In fact, the latter offers itself the luxury of attempting a foray beyond the upper bound of the bullish channel. Second, LUNA prices recovered on the Kijunwhich itself is at the level of the $76-77 support. Finally, they would be about to cross the Tenkan.
In the event that Terra manages to validate this latest favorable technical signal, the next target would be to attack the last ATH again at around $118-119. And this while prices remain in the upper part of the bullish channel.
LUNA prices in the Kumo and below the daily Kijun
If LUNA’s bullish trend has no challenge in weekly units, it does not make the same sense in daily units. Not only prices block simultaneously under the Kijun and the Senkou Span A (SSA), but they remain within the Kumo. And since technical analysis is doing well, it is no coincidence that the Kijun is playing the role of resistance at the $97-98 level.
Failure below this double resistance could reverse the short-term momentum unfavorably. And especially if Terra were to sink the Tenkan, then dangerously slide towards the Senkou Span B (SSB). In which case a move below the cloud would push prices back towards the $76-77 support. That said, the fact remains that the long-term bull run is far from being questioned as the bottom of the bullish channel would be a long way off.
In summary, there is no doubt that Terra’s long-term trend is bullish. What remains especially a sacred achievement as Bitcoin has failed to link new ATHs together. Probably the fact that you are directly supported by the creation of the stablecoin UST contributes to this outperformance against the king of cryptos.
In that sense, it is not surprising that investors think they have found their pet. As long as prices do not threaten the bottom of the bullish channel, buyers will hold their own against sellers. In the event of major downward moves in BTC under great support, the real question is whether LUNA would continue its outperformance or wisely return to the ranks of the cryptocurrency cycle. That is why it is important to be alert in the coming weeks. With the knowledge that the major uncertainties in the financial markets are far from being clarified.
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