Terra Price Forecast: LUNA Explodes To $15.5 As Investor Sentiment Flips Positive
- Terra price rebounds nearly 330% from May lows of $3.6 to trade August highs of $15.5.
- A real confirmed break above $15 would ascertain the uptrend that may soon reach all-time highs of $22.5.
- Overbought conditions could hinder the upswing to the record highs as the RSI retreats.
Terra carried on with the uptrend despite the sluggish price action across the cryptocurrency market since Monday. Following the crash in May, LUNA secured formidable support in the region between $3.6 and $4. This allowed for a considerable recovery, but seller congestion at $7 capped the upside throughout June.
July quickly became the month of reckoning for the bulls as they flexed their muscles, gaining ground from $5.5 to the most recent high of $15.5. Initially, the uptrend occurred with the generally up-trending market, whereby Bitcoin lifted to $42,500. However, as the market cooled down from the beginning of this week, Terra continued with the uptrend.
Where Could Terra Price Be Headed?
A barrier at $15 already limits the price action targeting $20 and the all-time high of $22.5. Besides, the Relative Strength Index (RSI) holds in the overbought region, implying that a correction is possible.
If the RSI’s retreat continues into the neutral area, we expect Terra to trim some of the accrued gains. Realize that the RSI calculates the strength of the bulls or the bears and follows the asset’s trend. Meanwhile, support is anticipated at $10.5 if the correction continues.
LUNA/USD 12-hour chart
Terra’s Bullish Outlook Seems Intact
The same four-hour chart highlights a bullish impulse from the Moving Average Convergence Divergence (MACD) indicator. This trend-following technical tool also calculates the momentum of the asset in a particular direction. In turn, the MACD sends buy or sell signals, helping investors identify entry and exit positions.
Currently, a buy signal presented around July 20 still stands steady. In other words, investors can consider holding longer before deciding to exit the market. Note that if the resistance at $15.5 remains intact, overhead pressure could mount. A sell signal from the MACD will ascertain the correction toward $10.5 and perhaps the 50 Simple Moving Average (SMA) at $7.5.
The chatter surrounding Terra has exploded in the past few days, with the social volume rising to 56, according to on-chain data by Santiment. This uptick in social followed was tracked across thousands of social media platforms, including Twitter, Reddit, and Telegram.
Terra Social Volume Spikes
As the related social media mentions surge, investors are attracted to the market. Initially, this increase keeps the price moving. However, the massive growth is rarely sustainable, and as it begins to fall, investors tend to sell for profit, thus making it difficult for the token to sustain the uptrend.