The bulls have yet again entered the space to discover new highs for the Terra (LUNA) price. Despite the lowered trading volume, yet the asset managed to range high and form a new ATH, a couple of hours before. And the main reason may be the diminished selling pressure which escalated the price very close to $70. However, the upcoming trend carries both the possibilities of discovering new highs or undergoing minor pullback.
The LUNA price was swinging within certain levels since the beginning of the Q4 in October. However, the asset acquired immense bullish potential that initiated a trend along the ascending parallel channel. The crypto which was swinging along the lower channel raised high. Further, it raised high in an attempt to slice through the upper channels. Woefully, it failed, yet hovering close to the upper zones of the channel.
The chart showcases the mounted buying pressure which uplifted the price towards its highs. No doubt the asset is experiencing a slight drain at the press time, yet may rebound in no time. Further, following the ascending channel, the LUNA price may find new highs above $75 close to $80. Yet the technicals point out contradictory price movements.
Considering the technicals, both RSI & MACD are manifesting a strong bullish trend since the last week of November. The RSI since the beginning of December dropped below the upper levels at 70, indicating the rally may have weakened a little. On the other hand, the MACD showcased a constant bullish trend for more than a week and is on the verge to unveil a sell signal soon.
Therefore, despite the price trend being pretty bullish, yet the technicals suggest a minor plunge may also be fast approaching. And hence in such a case, the asset needs to strongly hold above local support levels above $60. No doubt these levels are not much strong but are mandatory to continue with the uptrend.
Collectively, Terra’s (LUNA) price despite the lower volume and a minute sideway trend appears to be pretty bullish. Therefore despite the indicators pointing towards a correction, yet the rally may resume with the uptrend soon. The next leg up may uplift the price close to $80 levels by EOY 2021.