Could Terra Luna Crash?

Could Terra Luna crash? Altcoin project Terra, twenty-third largest cryptocurrency by market capitalization, may be gearing up for a fix.

Analysts think LUNA may be preparing for a correction. The twenty-third largest cryptocurrency by market capitalization has risen by nearly 180% since July 20, from the lowest $5.60 to $15.7. While Terra has room for a new uptrend, it currently sits in the overbought territory. The Relative Strength Index, or RSI, is hovering around 82.20 on the daily chart, suggesting there is nothing to worry about, according to the analysts. Every time the daily RSI of popular altcoin LUNA has crossed 80 since mid-February 2020, it has been followed by a steep correction. The Tom DeMark (TD) Sequential indicator adds credibility to the bearish thesis. This technical index is on the verge of presenting a sell signal in the form of a green nine candlestick on the same time frame. While the bearish pattern has yet to form, the near-term future does not look good for the bulls. A glance at Terra's daily chart proves that the TD setup is extremely accurate in predicting local tops in LUNA's trend. All five sell signals this indicator has presented since the beginning of the year have been confirmed and resulted in significant pullbacks. Therefore, the pessimistic scenario should be considered despite the significant buying pressure seen behind the popular altcoin LUNA. The Fibonacci retracement indicator shows Terra could dive towards $11.00 with an increase in profit taking at current price levels.