A downward trend line has been tracing the price of LUNA.
The price of SOL is presently showing signs of a gradual decrease.
The recent surge in Terra’s (LUNA) price has garnered much attention. The asset had been expected to break the $100 barrier for the second time, but a sharp decline quashed the surge. On the other hand, the price of Solana reversed course before it hit the $100 mark due to concerns that it would continue its steep decline.
A tremendous rally in Terra’s price decoupled it from the broader market trend, and it came within an inch of its all-time high, which was slightly over $100. Although the rally was initially strong, it lost momentum after being denied $95 many times. The price has dropped to around $90, and more drops are possible.
Bearish Momentum on the Cards
A downward trend line has been tracing the price of LUNA since it started its advance. It had previously rebounded when it reached these levels, and the same thing may be predicted this time. The price has now been forced to retest these levels due to the accumulation of red candles. On the other hand, RSI is showing signs of severe weakness, which might have a negative influence on the rise. A situation in which LUNA’s price falls below the trend line, signaling a significant negative signal, is possible.
A quiet rise in Solana’s pricing since the beginning of 2022 made it look to be less aggressive. While Solana and Terra have historically been linked, the price of SOL is presently showing signs of a gradual decrease with lower volatility. After a little respite, it plunged back into the triangle and dropped significantly and is 8.20% down in the last 24 hours.