The Terra price is struggling. LUNA made a substantial recovery this week after it dropped to $11.23 last week. It is trading at $16.48, which is 16% below this week’s high of $19.60. It has a market cap of $6.7 billion and is the 23rd-largest digital currency in the world, according to CoinMarketCap.
What is Terra? Terra is a cryptocurrency that builds on the ideas proposed by Satoshi Nakamoto, the founder of Bitcoin. The currency aims to achieve price-stability and growth driven. It acgueves stability through an elastic money supply that is made possible by the stable mining operations. LUNA, on the other hand, is a native staking token that is recognized by the Terra protocol. It serves as the foundational asset for the Terra network and ecosystem. So, what next for the Terra Luna price?
Turning to the four-hour chart, we see that the LUNA price has found a substantial resistance at the important level of $19.65. This is an important level since the currency struggled to move above this price between March and April this year. The currency seems to have formed a double-top pattern whose neckline is at $16.93. Further, Terra has mobed below the 25-day moving average.
In my view, this retreat is mostly because of profit-taking after the currency reached a key level of resistance. Therefore, while it is still early to tell, I believe that LUNA will resume its upward trend soon. But for this to happen, bulls will need to move above the resistance at $19.65. Nonetheless, a drop below $15 will invalidate the bullish thesis.
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