After several profitable trading sessions, Terra (LUNA) has stalled and is beginning to pull back. Price action has tightened into a very narrow range, and a small correction for LUNA appears possible in the near term. Key points to note:
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Following a few days of gains, investors are likely to take profits.
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Failure to sustain levels above $90 at the start of Monday trading could indicate weakness.
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The relative strength index also points to a bearish outlook over the coming days.
Data source: TradingView
How far could Terra (LUNA) fall?
We are not looking at a dramatic collapse. Over the past 24 hours the stablecoin platform’s token has dropped by roughly 1%, but further downside is possible. The critical level to watch is the $90 boundary, which currently serves as a key support zone for LUNA.
If the token trades notably below $90 at the start of Monday, we could see at least a 15% retracement by the end of the week. Additionally, a recurring pattern has emerged in this volatile market over the past few months.
Much of the bullish momentum has been driven by short-term speculative traders. Many of them are likely to lock in gains near $90, triggering a modest sell-off that could push LUNA down toward $75.
Is Terra (LUNA) worth your attention?
LUNA’s position among the top 10 crypto assets by market capitalization means it deserves attention. That said, it does not currently show signs of an imminent strong rally.
A prudent strategy would be to wait for a correction in the coming days and consider buying around $75. Short sellers may also find opportunities to capitalize on a brief pullback for quick gains.