The Terra (LUNA) price fell below a crucial horizontal support level and could drop to a new all-time low if it does not reclaim it soon.
The LUNA token is the native token of the Terra blockchain. After suffering a massive crash in May 2022, Terraform Labs founder Do Kwon fled Singapore. He is now rumored to be living in Serbia. While South Korean prosecutors have frozen some of his and his associates’ assets, there is no impending news regarding his arrest.
In other LUNA news, Su Zhu, the founder of the now-bankrupt hedge fund Three Arrows Capital, accused FTX and the Digital Currency Group for conspiring in order to attack the Terra ecosystem. The Digital Currency Group is the parent company of Grayscale, another fund that might be experiencing liquidity issues.
LUNA Breaks Down Below Key Support
Since its crash mentioned above, the LUNA price has initiated two relief rallies (red icons). The second was considerably weaker than the first. Both were retraced entirely in a very short period of time.
On Dec. 16, the LUNA price broke down from the long-term $1.65 horizontal price level. The support area had been in place for 155 days. Since the area had been in place for such a long period of time, it is possible that the breakdown from it marks the beginning of yet another downward movement. Since there is no support below the current LUNA price, this drop could take it to a new all-time low.
The daily RSI does not offer any possibility for relief. While the indicator is increasing, it is still below 50 and has not generated any bullish divergence yet.
As a result, the LUNA price prediction for January and beyond is considered bearish until the price reclaims the $1.65 area.
LUNA Price Prediction For Jan – New All-Time Lows Incoming
The technical analysis from the six-hour chart does nothing to dissuade from the bearish daily time frame outlook.
The LUNA price has followed a short-term descending resistance line since Sept. 12 and was rejected by it on Dec. 27. This created a long upper wick.
Since there is no horizontal support below the current price, the 1.61 external Fib retracement is used to find the next closest support area at $0.83.
To conclude, the LUNA price analysis is bearish as long as the price is trading below the $1.65 horizontal area and the descending resistance line. If the downward movement continues, the next closest support will be at $0.83.
For BeInCrypto’s latest crypto market analysis, click here.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
