How LUNA buyers can deploy this shorting strategy to hedge their risks

Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought of funding recommendation.

  • Terra’s LUNA fell again into its bearish shackles after reversing from its trendline resistance.
  • The crypto’s Social Dominance marked a declining development whereas diverging with the value motion. 

Terra’s May 2022 meltdown pulled its worth to ruins. But the restoration efforts over the previous couple of months have chalked out a psychological assist degree within the buyers’ minds within the $1.5-$1.7 vary.

Here’s AMBCrypto’s worth prediction for Terra [LUNA] for 2023-24

For over 4 months, LUNA struggled to discover a convincing shut above the $3.09-mark. The worth motion’s latest plunge from the six-month trendline resistance (white, dashed) reaffirmed the bearish edge. The coin might see a sustained setback within the close to time period earlier than choosing itself up within the coming classes.

At press time, LUNA was buying and selling at $2.4303, down by 4.94% within the final 24 hours.

LUNA entered a fragile place after reversing from its trendline resistance

Source: TradingView, LUNA/USDT

After an anticipated shopping for comeback from the $1.5 baseline from its all-time low (publish the crypto’s revival) on 29 August, LUNA regained some bullish momentum, however the trendline resistance curbed the shopping for rallies.

After testing this resistance a number of instances, the bears subdued the over-extended bull run. The altcoin reentered its long-term oscillation vary and took a sideways monitor. In the meantime, the 20 EMA (crimson) and the 50 EMA (cyan) refused to undertake a bullish crossover.

The most up-to-date bearish rebound from the 50 EMA reignited a pulldown towards LUNA’s three-week assist within the $2.4 area. A possible decline under this assist degree would place LUNA for a take a look at of the $1.7-$1.9 vary. 

On the opposite hand, an eventual or instant restoration from above the $2.4-level would help the buyers in retesting the long-term trendline resistance. An in depth above this barrier would trace at an entry set off.

Moreover, the Relative Strength Index (RSI) plunged under the midline to depict a shift in momentum towards the sellers. 

Declining Social Dominance

1666233242 209 How LUNA buyers can deploy this shorting strategy to hedge

Source: Santiment

Since the coin’s restoration efforts got here to fruition by bringing some stability to its worth, LUNA has been carefully correlating to its social dominance metric.

Over the final three weeks, the value diverged with the south-looking social dominance line. Should the value motion observe, LUNA might see a near-term setback earlier than a possible revival.

Finally, buyers/merchants should hold an in depth watch on Bitcoin’s motion. The latter might probably have an effect on the broader market sentiment.

Read one of the best crypto tales of the day in lower than 5 minutes

Subscribe to get it each day in your inbox.

Please choose your Email Preferences.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button