Terra [LUNA] looks undecisive after hitting overbought territory

Terra [LUNA] is one of many layer one blockchains that has witnessed a significant uptick over the last few weeks. In fact, since the market-wide May crash, LUNA has registered gains of more than 737%. However, after an incredible run-up to an all-time high near $35, the crypto asset appeared to have switched to a consolidation mode. Additionally, the crypto-asset also dropped two positions lower on the leaderboard and was now ranked as the 14th-largest by market cap.

Owing to the bullish halt, Terra [LUNA] was being traded at $29.11 after declining by 12.62% over the past 24-hours. At the time of writing, the digital asset recorded a market cap of $11.69 billion and a 24-hour trading volume of $1.76 billion.

Terra [LUNA] Daily Price Chart:

The increasing volume in the LUNA market has managed to uphold the forward marching trend. Additionally, the diverging Bollinger Bands [BB] depicted an increase in volatility in the market which can boost the price of the digital asset to move north.

The moving averages hovering below the LUNA candles also indicated an optimistic outlook as the gauge between the 50 DMA [Pink] and the 200 DMA [Yellow] increased after undergoing a Golden cross in the first week of August.

The falling Chaikin Money Flow [CMF] did not display a promising trend for LUNA, instead showed a rapid outflow of capital from the coin market. The Stochastic RSI was on the verge of a bullish crossover and a bounce from the oversold region. The Relative Strength Index [RSI], on the other hand, maintained its position above the 70-region near the overbought zone indicating buyers have an upper hand in the crypto-asset market.

The above technicals demonstrated that Terra’s trends were undecisive as consolidation continued. To climb higher, the crypto-asset needs to breach the recently hit ATH near $35. Meanwhile, the support points were found at $22.17, $14.2 and $11.8 respectively.

Chayanika Deka: Chayanika is a full-time journalist at TronWeekly with over two years of experience. A graduate in Political Science and Journalism, she focuses on the political and financial impact of cryptocurrency and blockchain developments.