Terra price analysis: LUNA drops 7%, once again below $50

While investors in Terra (LUNA) might’ve enjoyed the bullish outburst of the token in 2021, the Terra price analysis for Jan 30 comes with a bearish statement for investors. The current rank of the token in the market stands at Jan 9, with a market dominance of 1.13%.

In our previous LUNA price analysis for Jan 20, we saw LUNA aim for $100. Moreover, it seems that as per the data from CoinMarketCap, the trading volume of Terra (LUNA) dropped 43.66% in the last 24 hours. Furthermore, the market cap dropped 7.69% in the same duration. 

The daily candle for Jan 30 was initiated at a price of $50.9 and reached a daily high of $51.4. However, due to a drop in trading volume, the prices fell to a daily low of $48.3. At the time of writing, the price of SOL rests at $48.98. The token is way below a major resistance of $76, which has remained unbroken since our previous Terra price analysis.

Terra price analysis on the daily chart

The Terra price analysis on the daily chart below shows that the MACD line (blue) continues to progress below the signal line (orange). The MACD indicator also shows a bearish histogram.

Source: TradingView

The Bollinger Bands on the chart below give an important conclusion to our Terra price analysis. In December, we saw LUNA break out from the upper end of the Bands as it reached a new all-time high above $100.

Contrary to those levels, LUNA price action is influenced by the bears. If the selling volume increases, LUNA might break out from the lower end of the Bands.

Source: TradingView

Conclusion

The Terra price analysis on the daily chart today shows that the world’s 9th biggest cryptocurrency is at the risk of falling below $48 as well. Furthermore, as per our Ethereum price analysis, ETH is outperforming LUNA. On the other hand, Terraform Labs, the foundation behind Terra, is also involved with a lawsuit with the SEC, as recently TheCoinRise reported.