LUNA/USD is trading near 79 USD as of this writing and late last night Terra came within sight of 75 USD. LUNA/USD remains an intriguing cryptocurrency based on its ability to trade in a correlated relationship with the broad cryptocurrency market, but provides speculators with technical perceptions that can be interpreted as being an outlier.
The high water mark for LUNA/USD was made in late December of 2021 when Terra came within sight of 103.00000000. This was the record high for LUNA/USD. It is noteworthy that the apex didn’t occur in early November of 2021, when many of the other major cryptocurrencies flirted with and achieved record values. The recent low for LUNA/USD was made on the 31st of January when Terra traded slightly below 44 USD.
On the 22nd of February, LUNA/USD was only at the 48 USD price after essentially spending the month within a rather choppy range mostly between 49 and 60 USD. However, since the last week of February, LUNA/USD has been able to achieve a rather sizeable run up in value and on the 2nd of March it was trading within sight of 100.00000000 which equates into more than a doubling of its value. Speculators need to understand LUNA/USD continues to demonstrate extreme volatility.
LUNA/USD was actually trading within sight of its all-time highs one week ago. Since then, Terra has lost value and followed the path of the broad cryptocurrency market, but it is not trading near important one year lows. It is trading near short term support which should be monitored closely. If LUNA/USD falls through the 74.00000000 ratio and begins to show price velocity, some skeptical speculators may believe the cryptocurrency has further room to traverse lower.
Short-term trading conditions still remain nervous in the broad cryptocurrency market. If LUNA/USD reacts with more nervous selling this could create a test for Terra that may cause some traders to believe its lower February price range could be challenged once again. However, traders need to remain realistic and know when to cash in profits if they occur.
Speculators who believe LUNA/USD has been oversold and will again start to move upwards should use stop loss orders to protect against volatility which is certain to be exhibited. But in the short term traders may want to look for upside that moves towards nearby resistance in order to actually sell LUNA/USD and look for reversals lower.
Terra Short-Term Outlook
Current Resistance: 82.80000000
Current Support: 75.08000000
High Target: 88.0600000
Low Target: 70.10000000
