Terra (LUNA) appears to be moving sideways after climbing back above $54 support which turned into resistance in late January.

LUNA’s near-term outlook is tilted to the upside, although erasing some of last week’s gains.

Looking at the lower timeframe, we find some good buying opportunities. If the price does indeed drop below $54, there is still a demand zone in the south.

Good support is in place (yellow) with a Fibonacci retracement from $43.47 to a swing high of $60.64. In the near term, the $54 support and the $0.618 Fib area at $50 are notable.

Hourly LUNA/USDT chart | Source: TradingView

Since $54 is an area where the price has reacted positively over the past few months, holding above this level means a bottom has been made. Still, given the current landscape, prices may need to head further south to find demand. Furthermore, Bitcoin’s rejection by the $45,000 region and its decline below the $44.4,000 resistance suggests that there is a possibility that BTC will continue to fall and drag the altcoin market lower in the coming days .

In such a scenario, if BTC moves towards $42,000, the $50 region becomes an attractive buying opportunity.

At the time of writing, the price was below the 23.6% Fib retracement level and $58 where the sellers were in control.

Technical indicators

Hourly LUNA/USDT chart | Source: TradingView

The RSI failed to surpass the 50 level and has remained flat for the past few days. At the time of writing, it is again sloping down, showing that the bullish momentum is fading.

Awesome Oscillator (AO) shows quite a bit of selling pressure on LUNA.

CDV also declined slightly, although not as much as last week’s buying volume.

Conclude

Selling pressure has been present for the past few days and the momentum could also favor the bears in the short-term. The $54 and $50 levels could see an upside reaction in price and would be likely areas of demand.

Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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