Terra (LUNA) price declined below an important horizontal support and could decline to a new all-time low if it does not reclaim it soon.
The LUNA token is the native token of the Terra blockchain. In May 2022, Terraform Labs founder Doo Kwon fled to Singapore after suffering a massive crash. He is now rumored to be living in Serbia. While South Korean prosecutors have seized some of his and his associates’ assets, there is no imminent news regarding his arrest.
In other Luna news, Su Zhu, the founder of now-defunct hedge fund Three Arrows Capital, accused FTX and Digital Currency Group of conspiring to attack the Terra ecosystem. Digital Currency Group is the parent company of Grayscale, another fund that may be facing liquidity issues.
Luna broke below key support
Since its crash mentioned above, LUNA price has started two relief rallies (red icons). The second was much weaker than the first. In a very short time both were completely apostates.
On December 16, LUNA price broke above the long-term horizontal price level of $1.65. The support zone was in place for 155 days. Since the area was in place for such a long period of time, it is possible that its breakdown could be the start of another downward movement. Since there is no support below Luna’s current price, this decline could take it to its all-time low.
The daily RSI does not offer any scope for relief. While the indicator is rising, it is still below 50 and has not generated any bullish divergence yet.
As a result, the LUNA price forecast for January and beyond is considered bearish unless the price reclaims the $1.65 area.
LUNA Price Prediction for January – Incoming New All-Time Low
Technical analysis from the six-hour chart does nothing to take away from the bearish outlook on the daily time frame.
LUNA price followed a short-term descending resistance line since September 12 and rejected it on December 27. This created a long upper wick.
Since there is no horizontal support below the current price, the 1.61 external Fibonacci retracement level is used to find the next closest support area at $0.83.
To conclude, LUNA price analysis is bearish as long as the price is trading below the $1.65 horizontal zone and the descending resistance line. If the downside momentum continues, the next closest support will be at $0.83.
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