XRP, Terra Price Update: XRP Faces The Heat, LUNA closes in on 200-SMA

Saif Naqvi
Trading
Source: unsplash

The likes of XRP and Terra (LUNA) were brutalized by a larger crypto sell-off and snapped some unwanted milestones on Saturday. However, LUNA investors would be more at ease since its price was yet to break below its daily 200-SMA (green). As for XRP, a demand region between $0.58-$0.51 offered a sigh of relief but the market would still be open to short-selling.

XRP Daily Time Frame

Source: TradingView

XRP’s daily time frame was unpalatable for a bullish trader and ideal for a short trader, depending on how one looked at it. The alt formed a chain of lower highs and lower lows since November 2021, trading with a larger downtrend. Its price, which was already vulnerable to shorting after trading below its 20 (red), 50 (yellow), and 200 Simple Moving Average lines, registered an additional 13% over the last 24 hours. A single candlewick even touched $0.54- XRP’s lowest point in six months.

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Although a demand region between $0.58-$0.51 could offer some relief, XRP would be in the doldrums should it close below $0.50. The next closes support was available around $0.40- a level that was significant during XRP’s February 2021 rally.

Terra Daily Time Frame [LUNA]

Source: TradingView

A 13% decline dragged LUNA close to the lower boundary of its ascending channel-a pattern that has been active since September 2021. Its price currently sat at a 1-month low after sellers flipped a key daily 50-SMA (yellow) to bearish. However, unlike most mid-cap alts, LUNA retained its long term bullish-bias after maintaining above its daily 200-SMA (green).

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Nevertheless, its advantage would slowly begin to recede if sellers force a close below the conjunction of a lower trendline and $52 support. If no pushbacks are seen at the 200-SMA (green), LUNA would be on course to 28 November 2021 low of $37. A worst-case outcome would see LUNA decline to a support region around $23.2.