Terra (LUNA) Price Analysis: May 09

Terra (LUNA) Price Analysis: May 09
  • On May 9, the bullish LUNA price analysis is at $120.19.
  • LUNA’s bearish market price analysis for May 09, 2022, is $48.95.
  • Terra’s MA shows a downward trend.

In Terra (LUNA) price analysis on May 09, 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 09, 2022, is explained below within a day frame.

LUNA/USDT Descending Channel Pattern (Source: Tradingview)

A descending channel is a chart pattern formed from two downward trendlines drawn above and below a price representing resistance and support levels. The descending channel pattern is also known as a falling channel or channel down. The upper line is identified first, as running along with the highs and is called the trendline. 

The lower line is identified as parallel to the trendline, running across the bottom. It is a bearish chart pattern defined by a trendline supporting the series of lower lows and a diagonal resistance level connecting the lower highs.

Currently, the price of LUNA is $61.52. If the pattern continues, the price of LUNA might reach the resistance level of $87.80, $97.43, $120.19 and the buy level of LUNA is $74.90. If the trend reverses, then the price of LUNA may fall to $48.95 and the sell level of LUNA is $61.39.

Terra (LUNA) Moving Average

The LUNA’s Moving Average (MA) is shown in the chart below. 

LUNA MA (Source: Tradingview)

Currently, LUNA is in a bearish state. However, LUNA’s price lies below 50 MA (short-term), and it has a high chance of moving above the 50-MA level. Possibly, LUNA can also move above 200 MA (long-term) soon. Once it moves above 50 MA and 200 MA levels, it completely goes to a bullish state. Moreover, there is a high possibility of a Trend reversal 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.

Monisha is a Senior Programmer in the Automotive Embedded domain. Her interest in the cryptocurrency field made her write about crypto and blockchain-related news.