LUNA price is no match for two headwinds

 Terra price action is facing headwinds from both sides as a technical pattern is throwing a spanner in the works, together with that long-feared dollar strength that is re-emerging after several warnings from Fed officials towards the crypyto markets and as most of the dollar weakness got erased in the final trading hours on Friday. These two elements show the weak price spot for Terra action as we advance and look set to drop in search of support level towards $0.000112 near the 78.6% Fibonacci retracement level. At risk is even a full swing back towards sub price of $0.000100.

LUNA price is no match for two headwinds

First, Terra price action reveals daily a ‘Grave Stone Doji candle’ from Wednesday and Thursday. Characteristics are that first, there is a big bullish candle pattern like the one on Wednesday after the lower CPI print, followed the next day by an inverted hammer, but with no wick at the bottom. What follows is often a sell-off of multiple days until at least below the low of the terra price action from Wednesday. Translated, that would mean a drop of a minimal 4% is granted in search of support level near the 61.8% Fibonacci level at price of $0.000107.

Terra LUNA price next could tumble again as the dollar strength kicks in again on Friday, the University of Michigan revealed that inflation expectations are still higher, meaning that the Fed will continue to hike, and thus the dollar outweighs several altcoins in that equation. This could be the catalyst that pushed LUNA price below the green ascending trend line and dropped 20% towards price of $0.000095 at the 23.6% Fibonacci level. With this move, all of the incurred gains for July and the summer have evaporated.

An upside surprise could come from some easing tensions out of Ukraine, positive headlines around supply chain demand issues getting resolved or more drops in inflation. Any one of those helped with a weaker dollar would bring Terra LUNA price action towards $0.000137 at the 61.8% Fibonacci level to the upside. This could come with a price bounce of the $0.000118 baseline in case it holds over the weekend.

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