This year has been the worst for Terra’s LUNA as it continues to be more bearish each day. Earlier this week, LUNA was thrown out of the top 100 cryptocurrencies by market cap and is currently ranked at 101.
The current bearish trend is going to the roots and this could bring LUNA to trade below $2 as the LUNA price graph is now forming a descending triangle pattern.
LUNA Price Is Poised To Trade Below $2 This Month!
Bears are creating selling pressure which is building a potential downtrend for LUNA. After retesting its resistance level at $2.6131, LUNA seems to extend its bearish trend for the next couple of weeks as it can soon fall with a nearly 16% drop, pushing its price below $2.
According to CoinMarketCap, the price of LUNA is currently trading at $2.5 with a market cap of $318 million. The upper boundary of the Bollinger Bands and the 200-day SMA are indicating a strong resistance level at $2.7 on the LUNA price chart.
If this resistance level breaks, we can see a minor upward retracement, but the price may fall quickly. The 50-day SMA (simple moving average) and 20-day SMA are willing to trend downward, indicating a price drop soon. The critical support level is $2.4, below which LUNA may trade at $2.
The MACD line is also turning its way down, accelerated by lower trading volumes, as the RSI is moving below the 50-level, which indicates a decline in the price.
Terra Announces Terra Phoenix Airdrop
Terra, which powers LUNA, recently announced its launch of Terra Phoenix Airdrop. According to data from the airdrop, Terra and Thorchain (single contract) appeared to be at the top, claiming 50.5% of the total allocated tokens.
Polygon took second place, claiming 85,674 LUNA tokens (20.8%) from the allocation. The Ethereum network claimed 338,986 of the total LUNA tokens (6.9%), placing fourth on the list.
The initiative was taken by Terra to redistribute its 19,504,909 LUNA tokens to users who were somehow unable to get the correct allocated amount during its genesis. However, Terra is putting efforts into reconstructing LUNA’s image after the historic crash in May.
If investors take interest in Terra’s development and start buying LUNA during the dip, LUNA could soon recover and join a bullish rally in the near future. According to our LUNA technical analysis, the bull run looks far as it needs to keep its price level above $3.
