Solana and Terra have found support, but investors remain sidelined.
Solana and Terra have seen their market value drop by more than 23% over the past week.
Both Layer 1 tokens are now sitting at make-or-break points that will determine their fates.
A break of support or resistance could result in a significant move for both assets.
Solana and Terra have reached critical support areas after incurring significant losses over the past week. Still, buying pressure is yet to pick up for both assets.
Solana and Terra Reach Crucial PointsSolana and Terra have found important support levels.
The Layer 1 tokens appear to be trading at make-or-break points after retracing by more than 23% over the past week.
Solana is currently testing the upper boundary of the parallel channel that developed on its four-hour chart. Trading history shows that a rejection has occurred every time SOL has surged to this resistance trendline, leading prices to pull back to the channel’s lower edge.
A similar market reaction could see the Layer 1 token slice through the $108 support level and retrace 10% toward the channel’s lower trendline at around $100.
Still, as Solana has tested the channel’s upper boundary three times since Mar. 5, resistance could be weakening. SOL’s current price levels are critical because a decisive four-hour candlestick close above $115 could invalidate the pessimistic outlook. Breaching the crucial supply wall could result in an upswing to $124.
Source: TradingViewTerra’s native token is also sitting at a pivotal point on its trend. The Tom DeMark (TD) Sequential indicator recently presented a buy signal in the form of a red nine candlestick on LUNA’s 12-hour chart. The bullish formation anticipates a one to four candlesticks upswing, but buying pressure has not yet picked up.
The 100-hour exponential moving average at $91 within this time frame is the only level of support preventing LUNA from dropping further. Meanwhile, the 50-hour exponential moving average at $100 is acting as resistance, rejecting any upward price action. Only a 12-hour candlestick close outside of this price pocket can determine whether the optimistic thesis presented by the TD setup would be validated.
Source: TradingViewDue to the ambiguous outlook, traders will be looking to exercise patience around the current price levels. A decisive close above resistance could catapult LUNA to $110, while a breach of support could result in a downswing to $82.
Disclosure: At the time of writing, the author of this piece owned BTC and ETH.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
NFT Express: Your on-ramp to the world of NFTs
At Tatum, we’ve already made it super easy to create your own NFTs on multiple blockchains without having to learn Solidity or create your own smart contracts. Anyone can deploy…
OpenSea Teases April Drop Date for Solana NFTs
Mar. 29, 2022
NFT marketplace OpenSea has alluded to an April launch date for its Solana NFT support. Such support would place OpenSea in direct competition with Magic Eden, the current leader in…
Millions Lost as Solana DeFi App cashio Suffers Hack
The Solana stablecoin protocol cashio has suffered an exploit leading to a complete collapse of its flagship stablecoin, CASH. cashio Hacked for Millions cashio, a stablecoin protocol on Solana, has…
Terra’s Bitcoin Spree Could Help LUNA Moon
The Luna Foundation Guard (LFG) recently announced plans to accumulate billions of dollars worth of Bitcoin to stabilize UST. Terra’s LUNA now looks primed for new highs, but it must…