Terra (LUNA) – A cryptocurrency still in bull run mode in the face of a difficult market

In a difficult market context, where Bitcoin is struggling to recover from its recent failure during the $ 46,000 resistance, a cryptocurrency stands out remarkably from the party. Terra (LUNA), as it is this asset we are talking about, embodies a crypto ecosystem founded by the South Korean company Terraforms Labs and is currently part of the top 10 of the largest cryptocurrencies.

In addition, recent technical analyzes confirm that its bull run since the lows of March 2020 has remained intact. Following a legitimate consolidation following its last ATH on 5 April and despite the current ups and downs in the financial markets, could the recent recovery we are witnessing herald new records?

This analysis of the LUNA award is offered to you in collaboration with Coin trading and its algorithmic trading solution finally available to individuals.

LUNA largely dominates BTC

Before reviewing the technical analysis of LUNA on the various time units, it is always instructive to measure its balance of power against the king of the cryptos. And it is clear that we must do this a first-class nugget of gold.

With certainty, the chart above shows a broad dominance of LUNA over BTC due to an uptrend characterized by ever higher ups and downs. To the extent that the last resistance would be broken, the momentum of its bull run is not ready to stop. Conversely, we could see the beginning of a loss of momentum if the first near support were to break.

Terra (LUNA) – A good safety margin on the upside in weekly units

While Bitcoin is struggling to stand out from its (horizontal channel) between the resistance of $ 46,000 and the support of $ 34,000-35,000 since the end of January, the contrast is striking on the weekly price chart for LUNA. Take effect, these have found themselves at ease in a bullish channel going back to the week of August 16, 2021. Especially since their positions in relation to the various Ichimoku curves encourage investors to be calm.

Terra (LUNA) Price analysis in weekly units - 26 April 2022

Primarily, the prices of LUNA and Chikou Span are far above Kumo (Cloud). Even better, the latter offers itself the luxury of attempting an intrusion beyond the upper limit of the bullish channel. Secondly LUNA prices managed to rise at Kijunwhich in itself is on a par with $ 76-77 support. Finally, they would be about to cross Tenkan.

In the event that Terra manages to validate this last favorable technical signal, the next goal would be to attack again his last last ATH around $ 118-119. And this with prices back in the upper part of the bullish channel.

LUNA prices inside Kumo and during the daily Kijun

If the bullish trend in LUNA does not suffer from any challenge in weekly units, it is not the same phrase in daily units. Not only prices simultaneously block under Kijun and Senkou Span A (SSA), but they remain inside Kumo. And since the technical analysis does things well, it is no coincidence that Kijun plays the role of resistance at the level of 97-98 $.

Terra (LUNA) Price analysis in daily units - April 26, 2022

In the event of failure below this double resistance, momentum may turn unfavorably in the short term. And especially if Terra were to lower Tenkan, then slide dangerously against Senkou Span B (SSB). In that case a move below the cloud would push prices back toward $ 76-77 support. That said, it is a fact that the long-term bull run would far from be called into question because the bottom of the bullish channel would remain remote.

In summary, there is no doubt that Terra’s trend is long-term bullish. What remains, above all, a sacred achievement, while Bitcoin has not succeeded in this feat of chaining new ATHs. Probably the fact that being directly backed by the creation of stablecoin UST, contributes to this outperformance against the king of the cryptos.

In that sense, it is not in itself surprising that investors think they have found their pet. As long as prices do not threaten the bottom of the bullish channel, buyers will hold out against sellers. But in case of major downward movements in BTC under greater support, the real question is whether LUNA would continue its outperformance or wisely return to the ranks of the cryptocurrency cycle. That is why it is important to be vigilant in the coming weeks. While it is known that the major uncertainties in the financial markets are far from resolved.

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