LUNA/USD has demonstrated considerable volatility the past five days of trading as it has tested short term lows, erupted higher and then reversed lower again.
LUNA/USD is trading near the 89.7000000 mark as of this writing and is delivering speculators with plenty of trading opportunities as it moves fast and produces rapid changes in value. On the 25th of April, LUNA/USD was near the 97.50000000 mark, but one day later Terra fell from a seemingly comfortable value above 96.00000000 to nearly 86.90000000 in a handful of hours.
The drop of more than 10% in value in such a short duration certainly caused some speculators pain, while others no doubt profited if they were short sellers at that time. Speculators have a dangerous decision to make now regarding their perceptions on the direction of LUNA/USD. It will be important for traders to use their risk taking tactics wisely. LUNA/USD is near important support, but still maintains a rather attractive price range compared to many of its major cryptocurrency counterparts.
Interestingly, the fall to nearly 86.90000000 on the 26th of April did not come close to the one month low via technical charts. A price of nearly 76.00000000 was tested on the 18th of April; this price was a retest of lows seen in the first week of March. LUNA/USD while correlating to the broad marketplace; is actually still perhaps an outlier and speculators should be cautious with Terra based on this notion.
LUNA/USD can move fast and if support levels near 89.00000000 fail to hold and are proven vulnerable, a quick test of the 88.7500000 to 88.50000000 ratios could be seen. If short term selling were to build momentum and the 87.00000000 mark were challenged than additional nervous sentiment could develop in LUNA/USD, particularly if long term holders of Terra decide they should cash in some of the profits they have made.
While the broad cryptocurrency market continues to reflect nervousness, LUNA/USD may find itself reacting to this overall weak behavioral sentiment abruptly. The thought of selling LUNA/USD may not appeal to its speculators over the mid-term, but consideration of short and near term prices may be more important for day traders who have enough courage to short Terra.
If LUNA/USD actually climbs and begins to test the 90.00000000 mark in the short term, then it is also logical short term traders may search for quick hitting profits upwards. LUNA/USD has delivered swift results the past week and traders should be extra cautious within its choppy waters.
Terra Short-Term Outlook
Current Resistance: 90.55000000
Current Support: 88.74000000
High Target: 94.9800000
Low Target: 84.93000000