The Terra coin (LUNA/USD) traded over 3% higher on Tuesday, breaking the all-time high it reached earlier this month. Luna has been trading in the green area since last week and has closed higher every day in the last week, which shows extreme strength and upward tendency. LUNA allows holders to pay network fees, participate in governance, participate in the Tendermint Delegated Proof of Stake consensus mechanism, and bind Stable Coins. The recent rally is due to the fact that the Terra ecosystem has significantly improved its ecosystem in recent months.
Luna had corrected itself earlier this month, which could have been a great entry point for investors who had missed the previous rally. However, now many investors think that it is too late to buy Luna, as it has already reached a new all-time high. However, reaching a new all-time high does not mean that Luna’s rally is over, but only that investors need to be careful when entering it. You should make sure that you do not get in for fear of missing out on something.
Here’s what the charts indicate:
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After reaching a new all-time high earlier this month, Luna corrected to the breakout zone and tested the support again before recovering.
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It looks like Luna could do the same thing again, which is why a corrective movement could be seen soon. Therefore, investors need to be patient and wait for Luna to test the support at $76 again before getting in.
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Volumes are slowly falling, which indicates an early reversal. Therefore, a correction could be made soon.
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The RSI is in overbought territory, which suggests that sellers may soon appear for profit bookings.
Conclusion
Investors can wait for a correction, which may occur soon, and enter in the area of the support zone around $ 76 with the goal of a new all-time high.