LUNA below $50: Is Terra doomed to fall more?

LUNA price analysis for Feb 22, 2022, confirms that the token has fallen below $50, which was another important support zone that the token has broken. Furthermore, in the near future, we can expect the token to drop more as the market remains bearish. In our Terra price analysis for Feb 21, we saw that $50 was an important support level breaking which the token remains bearish.

The data from CoinMarketCap shows that the trading volume of the token surged 109.79% in the last 24 hours, followed by a 4.38% drop in the market cap. The Market Dominance of LUNA rests at 1.16%, while the Volume / Market Cap ratio has a value of 0.119.

It can be seen that the token began the daily candle on Feb 22 at a price of $50.11 and reached a daily high of $51.38. The daily low for the token stands at a value of $48.43, while the price of 1 LUNA at the time of writing is $49.71. 

LUNA price analysis for Feb 22 on the daily chart

LUNA price analysis on the daily chart will be implemented using 3 major indicators on the daily chart, which are very effective.

Source: TradingView

The MACD indicator on the chart above shows that the MACD line (blue) continues to trade above the signal line (orange) but the chances of a bearish divergence are very high. The MACD histogram is very lightish green as bulls fade away.

The RSI level continues to be in the bearish region and reads 40.59. It is also important to note that the gradient of the line is nearly neutral, indicating sluggish prices. 

Finally, the price action is in the bearish area of the Bollinger Bands and there is a huge possibility that the token breaks out from the lower end of the Bands in the near future.

Conclusion

Our LUNA price analysis on the daily chart can be concluded on a bearish note for the token, and it is possible that we witness Terra fall below $40 in the coming days.