Crypto currency background with various of shiny silver and golden physical cryptocurrencies symbol coins, Bitcoin, Ethereum, Litecoin, zcash, ripple.
The bounce in the Terra price did not last long. Once again, the LUNA coin has turned lower and looks in danger of heading lower still.
LUNA had managed to bounce from the lows last week. Sadly, the bounce didn’t take the price very high and it didn’t last for very long.
The Terra blockchain is a global payments and settlements system that offers stable coins pegged to the USD, the Korean Won, and the IMF’s SDR basket.
However, the Terra price has been anything but stable recently. The last trade of $0.2522 is almost -80% lower than the March $22.3300 high.
As the crypto market meltdown accelerated last week, the coin traded down to a low of $3.9102. Over the next 24 hours, the Terra price more than doubled to $7.9955.
Here we are just a few days later, and the price has lost -35% and may once again be heading back to the lows.
As we can see on the 4-hour chart, the Terra price is trading at the top end of a support band between $0.3900 and $5.3000.
The top end of the channel lines up perfectly with the supporting lows of February and March. The lower end aligns with the recent low.
This is an important area. If LUNA breaks down from this band of support, it could head much lower and possibly back to the early February highs at $3.0800.
If the price manages to stabilize, the upside target would, of course, be $7.9995, where the recent rally failed. A break above that price would suggest the selling may be over for the time being.
But, for now the path of least resistance looks to be lower
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