The market continues in its indecisive trading on Monday due to the uncertainty regarding the new heavily-mutated coronavirus strain detected in South Africa. Terra (LUNA) is trading under highs of $51.64, posted on Sunday, as broader bulls are taking a breather before resuming higher. At the time of writing, LUNA was trading at $48.49, down 4% on the day. Earlier in November, Terra passed a pair of proposals to burn $4.5 billion worth of Terra (LUNA), its native token, from community pools. The burn will occur every 800 blocks produced and is expected to raise the price of LUNA, at least in the long term. Staking validator, Smart Stakes indicates that Terra’s luna token burn is progressing as Terra’s circulating supply has decreased by nearly 5m since Nov. 25. Likewise, GAMEVIL, a Korean gaming platform announced its strategic partnership with Terra to accelerate building a blockchain ecosystem and support an NFT market targeted to open in the first quarter of 2022.
Key Levels
Resistance Levels: $60.00, $56.40, $51.64
Support Levels: $46.15, $41.08, $37.64
LUNA/USD Daily ChartTerra pushed higher after the rebound off the ascending trend line support at $37.20. The LUNA/USD pair is currently consolidating after a two-day rally from $37.20 support stalled at the $51.64 high on Nov. 28.
Solid supports at MA 50 ($43.99) and the ascending trendline support at $37.20 are expected to hold.
This will keep bulls intact for a fresh push higher and renew probes through resistance at $51.64 and $56.40 all-time highs. The RSI hovers around the 50 neutral levels suggesting possible consolidation. As long as bulls hold supports, the consolidation should be relatively brief, and we’d expect a break above $51.64 high to come sooner rather than later.
LUNA/USD 4-Hour ChartLUNA rebounded off the $37.91 support and was able to surmount the negative crossover of its MA to rise higher. Presently, LUNA remains well bid across its moving averages, suggesting optimism. Caution on a break below the $47.24 level would risk a deeper pullback towards the next support.
A bounce may occur at the moving averages 50 and 200 located at $42.89 and $45.76 respectively. Alternatively, a break of $51.64 high would continue the uptrend towards the all-time high at $56.40 to $60 and 70 levels next. Overall, despite the latest stalling in price, LUNA remains in an ascending tendency.
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