Can Terra [LUNA] Maintain Its Momentum, Aiming for a 50% Rise After Defending $0.16?

Terra [LUNA] has experienced impressive growth of 226% over the last nine days, including a significant 45.8% surge in the past 24 hours. This rise is attributed primarily to the recent upgrade of the Terra Chain to version 2.18, accompanied by notable trading volumes.

Key Takeaways

Terra [LUNA] has risen 226% in nine days and 45.8% in the last day due to a successful chain upgrade.
A bullish structure on the weekly chart indicates further potential if it supports above $0.168.
Key resistance levels to monitor are at $0.28, $0.51, and $0.72.
A reversal may occur if the 4-hour RSI shows bearish divergence.
Traders should consider entering long positions in the $0.16-$0.18 range, eyeing targets at $0.283 and $0.34.

Can Terra [LUNA] Maintain Its Momentum, Aiming for a 50% Rise After Defending $0.16?

Bullish Potential for Terra [LUNA]

Terra 1-week Chart
Source: LUNA/USDT on TradingView

The weekly chart of Terra indicates a bullish trend, with a confirmation expected if the price remains above $0.168. This price point is critical because it marked the peak before the previous downward movement. Moreover, trading volume has surged in the last two weeks, as reflected in the On-Balance Volume (OBV), surpassing the highs from December 2024, which is optimistic for bullish movements.

The Relative Strength Index (RSI) has crossed above 50, reinforcing the established bullish momentum. Traders should also watch for horizontal resistance levels at $0.28, $0.51, and $0.72.

Terra 4-hour Chart
Source: LUNA/USDT on TradingView

The positive outlook is further supported by the 4-hour chart, where the demand zone (represented by the cyan box) between $0.148 and $0.163 overlaps with the 61.8% Fibonacci retracement level at $0.155. Additionally, a bullish reaction may occur when the price retests this imbalance (shown in the white box). Thus, any price dip towards $0.16 could present an ideal buying opportunity.

Considering the Bearish Scenario

There exists a potential for a bearish divergence in the H4 RSI over the next several days, which may signal an upcoming price pullback. If this occurs and is accompanied by high selling volumes, falling below the $0.15 mark could spell trouble for the bulls.

Traders' Strategy: Should You Go Long on LUNA?

Despite the possibility of a bearish case, it appears less likely given the current bullish indicators on both the weekly and 4-hour timeframes. The $0.16 level remains robust support that bulls are expected to protect. The sustained buying pressure evidenced by the OBV supports this viewpoint.

Traders are encouraged to consider long positions within the $0.16-$0.18 range, with bullish targets aimed at the Fibonacci extension levels of $0.283 and $0.34.

Concluding Remarks

Disclaimer: This information is for educational purposes only and does not constitute financial, investment, trading, or other types of advice; it represents solely the author's opinion.