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LUNA Price Dumps Near $100, This Indicator Suggests the Rally Isn't Done Yet

Thu, 12/23/2021 - 15:31
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Tomiwabold Olajide
As LUNA takes a breather near $100, this indicator suggests the surge is not over yet
LUNA Price Dumps Near $100, This Indicator Suggests the Rally Isn't Done Yet
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According to CoinGecko data, LUNA, the native token of smart contracts blockchain Terra, has risen by nearly 50% in the last seven days and 124.2% in the last 30 days. LUNA subsequently reached record highs of $98.20 on Dec. 22, extending its winning streak while decoupling from the general trend in other altcoins.

A token burn, coupled with recent integrations and listing, seems to have aided Terra LUNA fundamentals. In October, Terra announced the implementation of proposal 44 to burn 90 million tokens held in the community pool.

After marking eight straight days of gains since Dec. 13, bulls could not sustain the push beyond $100 as Terra dipped to lows of $84.27 on Dec. 22. LUNA is once again climbing today, trading at a present price of $94.10. LUNA is up 18,000% this year, according to CoinGecko data.

This indicator suggests the rally is not done yet

Stellar rallies like that of Terra LUNA often translate into euphoria characterized by a blow-off top. However, LUNA's market shows no such signs, as per the RSI indicator.

The relative strength index (RSI) is a momentum indicator that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of an asset.

LUNA/USD 1-Hour Chart, Source: TradingView

On LUNA's hourly chart, the relative strength index (RSI) hovers far above its 50 neutral level with room for further growth, suggesting a continuous rally into its overbought region of 70 and above. As long as bulls hold the support, the rally should be relatively quick. One should expect a break above the recent $98.20 high to come sooner rather than later.

The LUNA price gained momentum after setting a strong foothold around the support at $84.19 on Dec. 23. This helped the hourly RSI to bounce above the 50 neutral mark toward bullish territory.

Terra is currently trading at $94.10 with a 24-hour volume of $4,417,405,816, as seen on CoinGecko. In the previous 24 hours, the price of LUNA has risen by 2.4%. There are 370 million LUNA coins in circulation with a total supply of 840 million.

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About the author

Tomiwabold is a cryptocurrency analyst and an experienced technical analyst. He pays close attention to cryptocurrency research, conducting comprehensive price analysis and exchanging predictions of estimated market trends. Tomiwabold earned his degree at the University of Lagos.