Since reaching an all-time high of $119.55 on April 5, Terra (LUNA) has been declining. On April 18, the coin hit a low of $75.67. Since then, the price has risen. Above the $102 region, the all-time high and subsequent decrease have created a bearish divergence. LUNA was predicted to confirm the $102 area as support after the breakout. On the other hand, the altcoin dropped through the area instead, which is now likely to provide resistance once more.
The relevance of the $102 resistance area is reinforced by the daily time frame, which indicates significant resistance at $98. As a result, the entire $98 – $102 range is regarded as significant resistance. The coin is trading flat between the $100 resistance and the $85 support, despite a breakout. Above the psychological round mark, bulls may try to set a new all-time high.
Weighted sentiment, according to Santiment data, is negative. Although this may appear to be a negative indicator, but the continuous unfavorable sentiment may be just what LUNA needs to reach $100.
One thing to bear in mind is that, despite the price increase, LUNA volumes have been declining. After all, a growing asset price does not always imply increased volumes and transactions. Still, the fact that TradingView’s Relative Volatility Index [RVI] fell below 50 is cause for alarm, indicating that volatility may be headed south in the near future.
LUNA was painting a red candle at the time of publication. As a result, it’s possible that the asset’s $100 home run is still a ways off. While the price is – for the most part – rising, LUNA development activity has been declining since mid-April, notwithstanding a brief recovery. While prices fluctuate, development activity is a strong indicator of how interested potential developers are in the project.
At the time of writing the coin is trading at $89.65 and is down by more than six percent in the last 24 hours.