The Terra price has bounced back after this week’s tragic sell-off. LUNA is trading at $30.70, which is about 33% above its lowest level this week. This means that the coin needs to just rise by about 17% to hit its highest level this week.
Terra Luna was not spared during this week’s cryptocurrency sell-off. The coin tumbled to a multi-week low of $22.98 as other digital assets tumbled.
There was no immediate news that pushed LUNA’s price lower. Instead, the coin declined as part of the overall cryptocurrency sell-off that happened. In most cases, altcoins tend to fall when Bitcoin falls and rebound when it bounces back.
The current rebound is mostly because there are signs that Bitcoin has found a major support slightly above the $46,000 level. Also, it is likely because of investors who are buying the dips considering that Terra is one of the most popular cryptocurrencies among traders.
The four-hour chart shows that the Terra price dropped to $22.80 on Tuesday. This was a notable level since it was also the lowest point on August 18.
The coin has then made an impressive recovery, rising by more than 30% from its lowest level this week. As a result, it has moved above the 25-day exponential moving averages (EMA). It has also moved above the neckline of the double-bottom pattern that formed at around $24.75.
Therefore, I suspect that the LUNA price will resume the bullish trend as investors target the YTD high of $36.60, which is its all-time high. The bullish view will be invalidated if the price drops below this week’s low at $22.80.