Terra (LUNA) Price Slips Below The $1.48 Level As Selling Pressure Escalates: How Long Before A Bounce?

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Terra (LUNA) price has been on a bearish streak since early February, recording lower highs and lower lows. Because of this accumulation pattern, the price is down 38.85% and will continue to drop unless bulls break out from this consolidation.

At the time of writing, LUNA was exchanging hands for $1.45 after losing 4.66% on the last day. This price decline decreased its market cap by 4.52% to $332.88 million. Nevertheless, the trading appetite for the token remained strong. Over the past 24 hours, the LUNA trading volume increased 40% to $43.5 million.

Terra (LUNA) Among Cryptocurrencies Feeling The Fed Heat

LUNA, like Bitcoin (BTC), is dangerously testing critical levels for the first time in weeks. The price has slipped below the $1.48 support level, which was flipped from resistance on January 9. Among the reasons for this bearish trend is the US Federal Reserve.

#Bitcoin

The ongoing correction is impacted by several factors:

1. Possibility of a Silvergate Capital bankruptcy
2. Faster-than-expected Fed rate hikes
3. Ongoing developments related to the Binance saga.

Support levels at 21k, 20k and 18k as the market adjusts. pic.twitter.com/npgGLlgV4h

— Stockmoney Lizards (@StockmoneyL) March 8, 2023

In his testimony before the US Senate Committee on Banking, Housing and Urban Affairs on Tuesday, Fed president Jerome Powell cautioned that interest rate hikes would not be going away any time soon.

Although inflation ‘has been moderating’ since its peak last year, ‘the process of getting inflation back down to 2% has a long way to go and is likely to be bumpy,’ Fed Chair Jerome Powell told U.S. lawmakers. More here: https://t.co/AAOkHPsMPK pic.twitter.com/mYiQ4TgWg8

— Reuters Business (@ReutersBiz) March 8, 2023

The comment set the tone for capitulation on the BTC/USDT trading pair, and with it, many altcoins have followed suit. Based on his testimony, “The latest economic data have come in stronger than expected, which suggests that the ultimate level of interest rates is likely to be higher than previously anticipated.”

Besides the Fed-provoked negativity in the crypto market, other factors have also played a role in shaking investor confidence. For instance, the Silvergate crisis has had market players jolted.

The bank had been struggling since the collapse of Sam Bankman-Fried’s crypto empire in November, which spooked investors to withdraw $8 billion in deposits from Silvergate. Consequently, the bank reported a net loss of $1 billion in Q4 of 2022.

Moreover, the industry continues to suffer at the hands of numerous crises that took place in 2022. From the collapse of the Terra ecosystem to the numerous insolvencies, investors remain hesitant to take long positions in the market. As such, a small provocation is enough to trigger a selling pressure.

Amid the Fear, Uncertainty, and Doubt (FUD), industry analysts expect prices of both stocks and crypto to plummet further.

#powellspeech was not as optimistic – interest rates are likely to hike, probably higher than previously anticipated. More work needs to be done to get inflation back down to 2%.

Both #crypto and #stock market experienced volatility post-speech. #Fed #cryptocurrency

— Ebonex AU (@ebonex_AU) March 8, 2023

Luna Price Downtrend Continues As Overhead Pressure Builds

At the time of writing, LUNA was auctioning for $1.45, still within the bearish consolidation. The price was confronting immediate resistance at $1.55, offered by the midline of the downtrend.

Additionally, the price shouldered the weight due to the growing overhead pressure due to the Simple Moving Averages (SMAs) presenting as resistance levels. If the buildup continues, LUNA could vacate further south while moving within the confines of the tunnel.

Such a trajectory would lead LUNA price to the $1.23 support floor. Considering the position of the Relative Strength Index (RSI) below the mean line with a price strength of 29, the case was stronger for the bears.

Similarly, the Moving Average Convergence Divergence (MACD) was also treading in the negative zone as the histograms were soaked in red. Together, these bolstered the case for the bearish case.

LUNA/USDT 1-Day Chart

LUNA 1-day chart March 8 — TradingView Chart: LUNA/USDT

On the flipside, if investors flock to buy the dip, the LUNA price could correct from its current direction and reverse northward. In such a case, the price would first have to overcome the midline resistance level at $1.55.

Beyond here, LUNA price would need to escape the confluence at the $1.70 level where the upper boundary of the bearish tunnel and the 100-day SMA converge. A daily candlestick close above this level would increase the odds for a rally north.

Once in open space, LUNA price could skyrocket further and tag the 50-day SMA at $1.902, or in highly ambitious cases, scale to the 200-day SMA at $2.018. Such a move would constitute a 39.37% increase from current levels.

LUNA Alternative

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A team of experienced professionals developed the C+Charge ecosystem, all focused on ushering the world toward a more sustainable future. To this end, the project incentivizes electric vehicle (EV) drivers to charge their vehicles at specific charging stations. The rewards or incentives come in the form of carbon credits and CCHG tokens.

Through EV driver incentivization with carbon credits and CCHG tokens, the project’s aspirations include encouraging eco-friendly driving while at the same time creating a marketplace for carbon credits. Everyone involved in this project will benefit. Moreover, the ecosystem has designed a burning mechanism where the remaining tokens from individual presale phases are burnt. As such, CCHG is already deflationary, an attribute expected to catapult its price. No wonder analysts are bullish about the token in 2023.

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BitMart, a renowned cryptocurrency exchange, has already confirmed the CCHG tokens listing beginning March 31. Numerous experts also support that due to C+Charge’s unique approach to the blockchain and Web3 technology spaces, the CCHG price will soar at least 20x in value during the first two days of the listing.

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