The big sales that started on Saturday in the crypto money markets recorded big decreases in a short time. During these declines Ripple (XRP) Altcoins like Terra (LUNA) and Terra (LUNA) have hit some undesirable milestones.
Despite this undesirable Terra (Luna) LUNA traders would take a deep breath as the price did not drop below the 200-SMA (shown in green). Ripple (XRP), on the other hand, took a deep breath in the ‘demand zone’ between $0.51-0.58, but there will still be short selling in the market.
Ripple (XRP) Chart, Daily Timeframe
The outlook for XRP on the daily timeframe was not very good for a bullish trader, depending on how it was viewed, but quite ideal for a short trader.
The altcoin has formed a chain of ‘lower highs’ and ‘lower lows’ since November 2021, trading with a larger downtrend. Price, already vulnerable to shorting the short after trading below the 20 (red), 50 (yellow) and 200 Simple Moving Average lines, has recorded an additional 13% in the past 24 hours. A single candle even touched XRP’s six-month low at $0.54, frightening its investors.
While the ‘demand zone’ of $0.51-0.58 provides some relief, if XRP closes below $0.50, a recession could begin. The next closing support for now is around $0.40, which is important during XRP’s February 2021 rally.
Terra (LUNA) Chart, Daily Timeframe
A 13% drop brought LUNA closer to the lower boundary of its ascending channel, while this model has been active since September 2021. Its price is currently at a 1-month low after sellers flipped the daily 50-SMA (yellow) to the downside. However, unlike most mid-range altcoins in value, LUNA retained its long-term uptrend after staying above the daily 200-SMA (green).
However, if the sellers force a close below the combination of a lower trendline and $52 support, the advantage will slowly start to wane. If no pullback is seen at the 200-SMA (green), LUNA will be heading towards the 28th November 2021 low of $37. Worst case scenario, it could create a drop of LUNA to a support zone near $23.2.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.