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Terra is soaring. Further buying pressure could send the Layer 1 blockchain’s LUNA token higher, potentially nullifying any spike in profit-taking.
Terra Hits New All-Time Highs
Terra has re-entered price discovery mode and is outperforming the leading cryptocurrencies.
The Layer 1 blockchain’s LUNA token reached a new record high above $57 Tuesday following a 50% rally over the past five days. The bullish impulse resulted from a rebound of the 200-twelve-hour moving average at roughly $37.84. Now, it appears that Terra could be bound for a short-lived correction.
The Tom DeMark Sequential indicator has presented a sell signal on LUNA’s 12-hour chart. The bearish formation developed as a green nine candlestick. An increase in profit-taking around the current price levels could result in a one to four 12-hour candlesticks correction before the uptrend resumes.
Slicing through the Nov. 10 all-time high at $55 could help validate the pessimistic scenario. In this scenario, Terra could drop toward the 78.6% or 61.8% Fibonacci retracement level. These critical areas of support sit at $51.3 and $48.5 respectively.
Sidelined investors may take advantage of such a correction to re-enter into the market, which would allow LUNA to advance further.
It is worth noting that LUNA will continue to look bullish as long as the $55 support level holds. If it succeeds, LUNA could advance toward the 127.2% Fibonacci retracement level at nearly $60. If the uptrend is significant enough, the uptrend could extend toward $65 or even $72.
LUNA is trading at $57.59 at press time, which puts Terra’s market cap at roughly $22.5 billion. It’s currently the 13th-ranked cryptocurrency.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.