Key points to remember
- Terra has jumped over 50% in the past five days.
- LUNA is now in price discovery mode, trading above $ 57.
- If the $ 55 support holds, prices could hit $ 60 or more.
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Terra is soaring. Further buying pressure could cause the LUNA token of the Layer 1 blockchain to rise, potentially nullifying any peak in profit taking.
Terra reaches new historic heights
Terra has returned to price discovery mode and outperforms major cryptocurrencies.
The Layer 1 blockchain’s LUNA token hit a new high above $ 57 on Tuesday after rallying 50% in the past five days. The bullish impulse resulted from a rebound of the 200 twelve-hour moving average to around $ 37.84. Now, it looks like Terra could be linked with a short-lived fix.
The Tom DeMark Sequential indicator presented a sell signal on the LUNA 12 hour chart. The bearish formation developed as a new green candlestick. An increase in profit taking around current price levels could cause a correction of one to four 12 hour candlesticks before the uptrend resumes.
Crossing the historic November 10 high of $ 55 could help validate the pessimistic scenario. In this scenario, Terra could fall towards the 78.6% or 61.8% Fibonacci retracement level. These critical areas of support stand at $ 51.3 and $ 48.5, respectively.
Sidelined investors could take advantage of such a correction to re-enter the market, which would allow LUNA to advance further.
It should be noted that LUNA will continue to look bullish as long as the $ 55 support level is held. If successful, LUNA could advance towards the 127.2% Fibonacci retracement level near $ 60. If the uptrend is large enough, the uptrend could extend towards $ 65 or even $ 72.
LUNA is trading at $ 57.59 at time of publication, bringing Terra’s market cap to around $ 22.5 billion. It is currently the 13th largest cryptocurrency.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.
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