Terra price seems poised for a minor correction after hitting an all-time high. The recent rally pushed LUNA up without a major pullback, making the anticipated pullback highly likely.
Terra price prepares for a small drop
Terra price is up by a whopping 73% in less than six days, starting at $37.77. This increase took LUNA to an all-time high of $65.60. As impressive as this rally was, Terra price did not witness any major drop during the climb.
From a larger perspective, LUNA has seen a massive increase, so investors can now expect a correction to come. So far, the Terra price has dropped by as much as 6% from its peak price – to $62.05.
An increase in profit taking is likely to push this altcoin down to the initial support level at $59.71. If this level is not maintained, the LUNA will slide lower and $55.21 will appear as the next support. A pullback to this level marks an 11% correction for Terra price from its current position.
Moreover, market participants can expect the bears to gain strength during this time and retest the Fibonacci 50% retracement level at $51.69. If this is down 17%, buyers are likely to step in. If the bulls fail to bounce back, interested investors are also likely to wait for further declines before taking action. Terra price could find major support and potential reversal around a buying zone between $43.61 and $48.44.
While the Terra price seems poised for a dip for now, there is still the possibility that things are going fast and we could see a buying move that pushes LUNA to surpass its $65.61 high. Such a move indicates that the bulls are in action and will put $68.94 into play, which coincides with the 161.8% Fibonacci level. If terra price closes above this barrier, it will create a higher top, invalidating the bearish thesis.
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.