Terra price signal that preceded an 80% LUNA rally is back
A technical setup that preceded a circa 80% price rally in the Terra (LUNA) market in August 2021 has appeared again.
The technical setup involves a so-called "signal line crossover" between LUNA's weekly MACD line — equal to the difference between the token's 12-week and 26-week moving averages (MA) — and the 9-week MA called the Signal Line, plotted above the zero line, as shown in the chart below.
Together, these lines represent Moving Average Convergence Divergence (MACD), a momentum oscillator to determine a market's direction and momentum.
So, if the MACD line crosses above the signal line, markets interpret it as a bullish MACD crossover. Conversely, a bearish MACD crossover occurs when the MACD line falls below the signal line.
LUNA's weekly MACD line closed above its signal line earlier this month, raising speculations about a strong bullish momentum ahead. For instance, independent market analysts "Argonauts" cited a similar bullish crossover from August 2021 that occurred before the Terra token's circa 80% price rally — from $12 to $102.
Something is up on $LUNA weekly timeframe. Last time the MACD crossover occured it sent $LUNA from $12 to $106. #luna #nfa pic.twitter.com/9TYyGmp88j
The MACD-based bullish outlook in the Terra market also stems from LUNA's incredible price performance in the last thirty days.
Notably, LUNA's price has surged by nearly 90% after bottoming out at $47.25 on Feb. 20, now eyeing a run-up above $100.
Nonetheless, the Terra token's strong upside move accompanies a decreasing momentum, as illustrated by its weekly relative strength index (RSI), and weakening trading volumes, suggesting bullish exhaustion is close.
Therefore, a pullback from levels near $100 could have LUNA retest its
Read more on cointelegraph.com
