LUNA drops 30% after buying volume dumps

LUNA price analysis for May 16, 2022, ends on a bullish note for the coin and it seems that we might not see Terra back to its feet soon.
LUNA price analysis for May 16, 2022, ends on a bullish note for the coin and it seems that we might not see Terra back to its feet soon.

LUNA price analysis for May 16, 2022, comes on a bearish note for the coin with increased chances of crashing further. In the last 24 hours, we have seen the token drop more than 30% and it seems that there are chances of breaking lower if the bulls don’t take over. It was also noted in our LUNA price analysis for May 15, 2022, that the token was unable to push higher as it reclaimed the $2 billion market cap. Additionally, we can expect higher prices if the burning of additional tokens takes place in the near future.

It is also important to note that data from CoinMarketCap shows that the trading volume for LUNA has increased by 212.37% in the last 24 hours, followed by a 46.77% surge in the Market Cap. On the other hand, the Volume / Market Cap Ratio for LUNA stands at 3.22 and the Market Dominance of the coin has become negligible.

The daily candle for LUNA opened at a price of $0.0002121 and reached a daily high of $0.0002840. Furthermore, the daily low for the coin stands at $0.0002120, while the price of 1 LUNA at the time of writing is $0.0002582.

LUNA price analysis for May 16 on the daily chart

LUNA price analysis for May 16, 2022, will consider the data from the daily chart below and dive deeper into the readings from 3 major indicators in the crypto space.

LUNA price analysis
Source: TradingView

The MACD indicator shows that the MACD line remains below the signal line and the MACD histogram confirms that selling pressure is very high.

The RSI indicator reads a value below 15 confirming that LUNA is an oversold and highly volatile asset and many people have lost their investments. 

The price action for LUNA rests in the lower end of the Bollinger Bands while a breakout for the token continues.

Conclusion

LUNA price analysis for May 16, 2022, ends on a bullish note for the coin and it seems that we might not see Terra back to its feet soon.

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