Terra (LUNA) is up 70% from its swing low on May 21 – Is the LUNA bottom in? We review the LUNA chart and make some LUNA price predictions.
Using the Fibonacci retracement tool to attempt some LUNA technical analysis – we may find support at the 0.618 level around $0.00015 before another move to the upside. Currently the LUNA price today of $0.00017 has broken down from its symmetrical triangle trading range over the weekend.
Cryptoassets are a highly volatile unregulated investment product. Your capital is at risk.
LUNA now has a hyper inflated circulating supply of 6.5T, changing the potential ceiling price of LUNA.
Personally, I think it is very unlikely we will even ever see $0.01 again. However a trading set up and short-term buying opportunity still exists and we could potentially see a 3-5x gain from the current LUNA price levels.
I discuss that and more in the Terra (LUNA) price prediction video below.
Using the Fibonacci extension tool from the swing high at $0.000458 on May 4th, we can assume that both a bullish and pragmatic target for Terra (LUNA) could be around $0.000681.
Before this particular level of resistance we could also hit lower Fibonacci levels such as the 1.272 giving us a LUNA price target of approximately $0.00055.
If in the next few months Bitcoin decides to revisit its 200 week moving average and test lower levels around $20,000-$23,000 the LUNA price will also drop to lower levels such as $0.00009.
The overall LUNA price forecast will also depend on the rest of the crypto market.
LUNA technical analysis – Fib levels
Every market is moved by emotion and currently the macro-trend is down. All bear markets eventually turn into bull markets and vice versa, in bear and bull cycles.
I believe after the Terra crash event we could potentially see the bottom soon priced in for the entire market, similar to the COVID crash of March 2020. The weekly RSI for Bitcoin has only been this low once in the last two years – the last time being during that crash.
If Bitcoin reaches peak euphoria again and we revisit the extreme greed phase following the next Bitcoin halving in 2024, we could see a new local-high for the LUNA price as altcoins would also increase in value.
The bearish case for Terra (LUNA) right now is that there is lack of trust for the LUNA project. Many traders still though are taking advantage of the volatility and even scalp trading the LUNA price.
With a LUNA market cap today of $1.2 billion, it has room to establish an uptrend to much higher price levels. In the short-term though we must remain pragmatic and have our eyes set on a dollar-cost averaging strategy. Technical analysis aside, a long-term holding strategy always wins.
Just before we saw the UST crash and the huge capitulation event after seeing hyper inflation of the LUNA circulating supply, the Terra crypto was a top 10 asset, trading at around $87. The LUNA all-time high of $119 was set on April 5th 2022.
Terraform Labs had a loyal global community before the crash. They had supposedly launched a reliable DeFi protocol that used fiat-pegged stablecoins to power price-stable global payment systems.
From the whitepaper, Terra combined price stability and a wide adoption of fiat currencies with the censorship resistance of BTC, offering tremendously fast and affordable transaction settlements.
Terra’s native token, LUNA, was used to stabilise the price of the pegged stablecoins. In this case, algorithmic stablecoins. LUNA holders had the freedoms to also vote on the governance of the Terra project – making it a governance token.
Read more on LUNA and what happened in our other posts below. It’s difficult to make a LUNA price prediction after a black swan event, and technical analysis might not apply heading into June – proceed with caution if you do decide to buy the LUNA dip.
DeFi Coin (DEFC) – Undervalued Project
This article was written for Business 2 Community by Jacob Bury.
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Jacob is a video content producer on the Youtube channel ‘Jacob Crypto Bury’, and a semi-professional trader.… View full profile ›
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