Terra (LUNA) – A cryptocurrency still in bull run mode in the face of a difficult market

In a difficult market context where Bitcoin is struggling to recover from its last failure below the resistance of $ 46,000, a cryptocurrency stands out remarkably from the lot. Terra (LUNA), since it is this asset we are talking about, embodies a crypto ecosystem founded by the South Korean company Terraforms Labs, and is currently part of the top 10 of the largest cryptocurrencies.

Moreover, the latest technical analyzes confirm that its bull run since the low points of March 2020 remains intact. After a legitimate consolidation following its last ATH on April 5 and despite the current ups and downs in the financial markets, could the recent rebound we are witnessing augur new all-time highs?

This analysis of the LUNA price is offered to you in collaboration with the Coin Trading and its algorithmic trading solution finally accessible to individuals.

LUNA largely dominates the BTC

Before sifting through the technical analysis of LUNA on the different time units, it is always instructive to measure its balance of power against the king of cryptos. And it is clear that we have to do a top notch nugget.

For certain, the chart above shows a broad dominance of LUNA against BTC due to an uptrend marked by increasingly higher highs and lows. Insofar 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 were to break.

Terra (LUNA) – A nice margin of safety on the upside in weekly units

While Bitcoin struggles to disentangle itself from its tidy (horizontal channel) between the resistance of $46,000 and the support of $34,000-35,000 since the end of January, the contrast is striking on the weekly price chart of LUNA. In effect, these have settled comfortably into a bullish channel dating back to the week of August 16, 2021. Especially since their positions in relation to the various Ichimoku curves encourage investors to be calm.

Terra (LUNA) Price Analysis in Weekly Units - April 26, 2022

First of all, the prices of LUNA and the Chikou Span are well above the Kumo (cloud). Better still, the latter offers itself the luxury of attempting an incursion beyond the upper limit of the bullish channel. Secondly, LUNA prices managed to rebound 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 last favorable technical signal, the next target would be to attack again its last last ATH around $118-119. And this, with prices remaining in the upper part of the bullish channel.

LUNA prices inside the Kumo and under the daily Kijun

If the bullish trend of LUNA does not suffer from any challenge in weekly units, it is not the same sentence in daily units. Not only prices block simultaneously below the Kijun and the Senkou Span A (SSA), but they remain inside the Kumo. And as the technical analysis does things well, it is no coincidence that the Kijun plays the role of resistance at the level of 97-98$.

Terra (LUNA) Price Analysis in Daily Units - April 26, 2022

In case of failure under this double resistance, the momentum could turn unfavorably in the short term. And especially if Terra were to sink the Tenkan, then slide dangerously towards the Senkou Span B (SSB). In which case a move below the cloud would push prices back towards the $76-77 support. That being said, the fact remains that the long-term bull run would be far from being called into question, because the bottom of the bullish channel would remain distant.

In summary, there is no doubt that Terra’s trend is long-term bullish. What remains above all a sacred performance while Bitcoin has not succeeded in this feat of chaining new ATHs. Probably the fact of being directly backed by the creation of the UST stablecoin contributes to this outperformance against the king of cryptos.

In this sense, it is not in itself surprising that investors believe they have found their pet. As long as prices don’t threaten the bottom of the bullish channel, buyers will hold out against sellers. However, in the event of big downside movements in BTC under major supports, the real question is whether LUNA would continue its outperformance or wisely return to the ranks of the cryptocurrency cycle. Hence the importance of being on the alert in the weeks to come. While knowing that the major uncertainties on the financial markets are far from being cleared up.

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