LUNA/USD has gained rapidly in the past day, and has likely turned negative sentiment among skeptics into a reconsideration of upwards potential.
As of this writing LUNA/USD is still below 100.00000000, but the value of Terra has delivered a rather impressive gain in the past two days. After slipping to a low of nearly 75.68000000 on the 18th of April, LUNA/USD now is traversing the 95.00000000 level with its typical amount of fast trading. However, the rise upwards in the past two days represents almost a 20% change of value, not a bad result, and some speculators if they were lucky, hopefully have been able to capture some of the profits made when Terra marched higher.
LUNA/USD has certainly mirrored nervous sentiment seen in the broad cryptocurrency market the last two and half weeks. However, Terra’s high of approximately 120.00000000 on the 5th of April was an all-time high. The move lower after reaching that apex was strong, and the percentage loss was likely enough to make many optimistic bullish speculators reasons to pause and consider the negative trend.
Yet the last two days of trading has reinvigorated LUNA/USD with a solid move into a rather intriguing part of its price range. Terra has also recently announced that its ‘corporate treasury’ has added additional Bitcoin to its holdings. The notion that LUNA/USD has a mandated policy from its leaders to hold BTC within its Terra financial infrastructure, and continues to buy Bitcoin as a ‘foundation’ likely adds to the allure of LUNA/USD for its bullish audience.
The broad cryptocurrency market has climbed also in the past couple of day within most of the major digital assets, but the percentage change upwards in LUNA/USD is stronger than the average return of most other cryptocurrencies. If LUNA/USD can maintain it’s trading near the 95.00000000 juncture in the short term it may spark additional buying. Perhaps short sellers may believe the move higher the past couple of days, makes Terra a candidate to look for quick hitting trades that seek limited downside too.
However, traders who are going to bet against the upwards trend that LUNA/USD has created in the past two days should be cautious with their leverage and stop loss orders. If LUNA/USD continues to demonstrate reasonable strength in the short term and holds onto a substantial amount of the gains it has made, another leg up is certainly not out of the question. Buyers looking for additional moves higher cannot be blamed, and igniting long orders on slight reversals lower near current short term support levels may prove to be a worthwhile wager.
Terra Short Term Outlook:
Current Resistance: 96.42000000
Current Support: 94.25000000
High Target: 119.2500000
Low Target: 88.75000000
