Is Terra (LUNA) Done Correcting After 93% Decrease In Three Days?

Terra (LUNA) has been falling sharply since May 9 and has so far reached a low of $4.12. This is the lowest price since early 2021.

LUNA has been falling since reaching an all-time high of $119.55 on April 5. The decrease rendered that the breakout above the $105 horizontal area was only a deviation (red circle). The decrease was also preceded by bearish divergence in the weekly RSI (green line).

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The downward movement accelerated during the week of May 9 to 16. So far during the week, the price has decreased by 91%.

Currently, it is trading inside the $6 horizontal area, which has not been reached since June 2021.

Cryptocurrency trader @blurcrypto tweeted a chart, which shows that the price has decreased by more than 50% in a single day.

Since the tweet, LUNA has resumed its descent and reached a low of $4.40.

Will LUNA bounce?

The daily chart shows no clear bullish reversal signs. However, the daily RSI is the most oversold it has ever been, reaching a low of 15.

Similarly, the two-hour RSI reached its all-time low of 9 on May 10, and is now possibly generating some bullish divergence.

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However, the divergence is not yet confirmed and could be invalidated if the price continues falling.

Potential bottom

The wave count suggests that LUNA is mired in a very steep five-wave downward movement, of which it is in wave three (black). The sub-wave and minor sub-wave counts are given in red and white, respectively, in the chart below.

Due to the sharp drop, the use of the 15-minute chart is required in order to visualize the price movement.

While a significant bounce could occur soon, the wave count suggests that the entire decrease is not yet complete.

For Be[in]Crypto’s latest Bitcoin (BTC) analysis, click here


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