Hodl, dear members of LeoFinance!
Today, I would like to analyze the price chart of Terra, the ninth biggest crypto by market cap, that had an astonishing 2021 year.
So, in the monthly chart (MN), after the solid bullish candlestick for December, LUNA/USD is currently forming a bearish candlestick:
This bearish candlestick has a local high below the previous one. So, this is a bearish signal. However, it has a local low above the previous one, plus, its body is still within the body of the bullish candlestick. That's why I would say that in the monthly time frame a consolidation is starting. But this consolidation could be quite volatile. That's why the bulls have to be really very careful.
Next, if we look at the weekly chart (1W), we can see that two bearish candlesticks with lower highs and lower lows have formed:
Moreover, the bodies of the two bearish candlesticks, combined, cover the body of the last bullish candlestick. In my view, this is a clear signal that the bears are controlling the market and trying to put further pressure on the price.
Let's check the daily chart (1D). The three key Moving Averages, namely, the 30-day MA (MA 30), the 90-day MA (MA 90), and the 360-day MA (MA 360) continue to move upwards, indicating that the bullish trend remains in place:
But, as can be seen from the chart, recently, the price has dropped below MA 30 - a signal that, in the short-run, LUNA/USD is in a phase of correction.
And, in the 4-hour chart (4H), this correction has formed a Descending channel (downtrend):
I will start looking for a buying opportunity only if LUNA/USD exits this channel upwards. But, for now, I will definitely stay away, because it is clear that the bears control the market.
To be continued ...
As of the time of writing, one LUNA costs $72,27 on the Binance exchange, according to TradingView.
A few words about me:
Just to let you know: I've been working professionally as a currency analyst for the last 15 and a half years and as a cryptocurrency analyst for the last 4 and a half years.
Important!
Keep in mind, that thoughts expressed here are my own, and they should not be regarded as recommendations for any cryptocurrency/commodity trades, investments and etc.
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this is a nice way for analysis to use multiple timeline , my analysis always get too much biased with one timeline and unintentionally analysis all them by my balanced idea.
greet job, I always enjoy reading your analysis
@pejmanda, I always use different time frames to make sure if there are no contradictions in the different time frames. Usually, I include in my analysis, when trading/buying a crypto, all time frames between Monthly and 1-hour.
Thank you for stopping by and commenting. Glad you find my post interesting.
Posted Using LeoFinance Beta