- On May 6, the bullish LUNA price analysis is at $97.46.
- LUNA’s bearish market price analysis for May 06, 2022, is $66.63.
- Terra’s MA shows a downward trend.
In Terra (LUNA) price analysis on May 06, 2022, we use price patterns, and Moving Average about LUNA to analyze the future movement of the cryptocurrency.
Terra (LUNA)
Terra is a blockchain network built using Cosmos SDK specializing in stablecoin creation. Rather than use fiat or over-collateralized crypto as reserves, each and individual stablecoin is convertible into the network’s native token LUNA. It enables users to pay network fees, participate in governance, stake in the Tendermint Delegated Proof of Stake consensus mechanism, and peg stablecoins.
Stablecoins on the Terra network use a different method to maintain price parity than collateralized fiat-backes stablecoins and crypto-backed stablecoins. However, Terra’s stablecoins, use algorithmic methods to control their supply and maintain the peg. The LUNA token is integral to Terra’s algorithmic stablecoins as it absorbs the stablecoin’s demand volatility. with an elastic monetary policy, LUNA carefully controls the supply of Terra’s currencies.
Terra Station is the official Terra crypto wallet and dashboard that allows LUNA holders to access their funds,take, and participate in governance. It’s available as both an app for mobile devices and as a browser extension. It is a non-custodial wallet, which means, only you have access to your private keys.
Terra (LUNA) Price Analysis
LUNA price analysis on May 06, 2022, is explained below within a four-hour time frame.
A horizontal channel or sideways trend has the appearance of a rectangle pattern. It consists of at least four contact points. This is because it needs at least two lows to connect, as well as two highs. Buying and selling pressure is equal, and the prevailing direction of price action is sideways.
Horizontal channels provide a clear and systematic way to trade by providing buy and sell points. When the price hits the top of the channel, sell your existing long position or take a short position. The difference between the other two is that a horizontal channel is characterized as having equal highs and lows.
Currently, the price of LUNA is $80.60. If the pattern continues, the price of LUNA might reach the resistance level of $97.46 and the buy level of LUNA is $87.11. If the trend reverses, then the price of LUNA may fall to $66.63 and the sell level of LUNA is $76.12.
Terra (LUNA) Moving Average
The LUNA’s Moving Average (MA) is shown in the chart below.
Currently, LUNA is in a bearish state. Notably, the LUNA price lies below 50 MA (short-term) and 200 MA (long-term), so it is completely in a downward trend. Therefore, there is a possibility of a reversal trend of LUNA at any time.
Disclaimer: The opinion expressed in this chart solely author’s. It does not interpreted as investment advice. TheNewsCrypto team encourages all to do their own research before investing.
