LUNA/USD: Terra’s Slight Selloff May Spark Additional Buying

LUNA/USD was able to trade slightly above the 93.00000000 level in early trading this morning, but has produced a slight selloff and this may spur on additional speculative buying.

LUNA/USD continues to find plenty of speculative attention and it remains near all-time record values which were achieved on the 27th of December when Terra coin climbed over 100 USD in value briefly. The ability of LUNA/USD to now traverse the 90.00000000 and above territory with relative comfort is a demonstration of the force Terra has created with its dynamic speculative run higher. On the 25th of September, LUNA/USD was trading slightly under 25.00000000.

While the broad cryptocurrency market has struggled with headwinds in recent trading and many of the major cryptocurrencies have had problems maintaining their record levels, LUN/USD continues to produce rather astonishing moves higher. However, a one-way avenue for traders is not guaranteed and violent reversals could develop for Terra, which could cause troubling speculative losses. Traders are highly encouraged to use stop loss orders to guard against sudden spikes downward.

Traders will also notice that volumes on LUNA/USD are still not extraordinarily high. Technically, this can be examined via charts using candlestick formations which show prevalent gaps in trading, particularly with short term viewpoints. The current price of LUNA/USD is moving fast and is near the 88.40000000 mark. The vast climb LUNA/USD has made in recent trading certainly creates the notion that it may be within a speculative bubble. If over-exuberance within Terra coin subsides, a move downwards could be violent.

From a risk reward perspective, traders must use entry level orders to trade LUNA/USD to protect against strange fills which may not feel transparent.  If short term support near the 87 USD level is able to be maintained traders may be tempted to look for additional upside potential. Traders should use take profits and not be too overly ambitious with Terra coin.

Terra coin is of definite interest because a lot of its influence comes from South Korea and the cryptocurrency has a business model it is pursuing.  Buying LUNA/USD on reversals lower may prove worthwhile, looking for quick trading higher and upwards action is the trend speculators may want to wager on. However, buyers should be aware of broad market cryptocurrency sentiment short term which appears to be nervous and may create headwinds on occasion near term.

Terra Short-Term Outlook

Current Resistance: 90.20000000

Current Support: 87.70000000

High Target: 98.4600000

Low Target: 85.70000000

LUNA/USD

Robert Petrucci
Robert Petrucci has worked in the Forex, commodity, and financial profession since 1993. Important aspects of his work involve risk analysis and advisory services. As an advisor in a Family Office he maintains a conservative approach for wealth management and investments. Robert also works in private finance with investors and companies delivering financial and management services.