Terra LUNA Price Prediction: LUNA Under Attack, Can We Expect Reversal?

• Terra LUNA price prediction remains strongly bearish, and it has the potential to drop below $1 today.
• The cause LUNA steep drops could be attributed to the crypto market’s risk-off mood, which continues to put pressure on crypto coins.
• A break below $1 today could extend the downtrend to $0.85 and $0.64.

The price of Terra (LUNA) has continued to fall since Monday, now trading below $5 per coin. Terra LUNA price prediction remains strongly bearish, and it has the potential to drop below $1 today. As the entire project appears to be unraveling, the prices of Luna (LUNA) and its linked stable coin TerraUSD (UST) are in freefall.

It’s meant to stay on track because of burn mechanics involving related token Luna. However, the system has failed recently, prompting investors to leave the market. Even though the Luna Foundation Guard (FLG), a non-profit dedicated to supporting the Terra ecosystem, invested $1.5 billion in assets on Monday to aid the stablecoin’s return to its peg, it was insufficient. According to The Block, LFG is seeking more than $1 billion in funding for the project.

Luna Price Review

Luna’s price has dropped 85 percent in the last 24 hours to $4.51 as of 3:40 a.m. ET on Wednesday. It has dropped from its April high of $116. Luna’s role in maintaining UST’s stability is one of the reasons it has been hit so hard. On the other hand, UST has completely lost its peg. It’s now $0.27, implying that stablecoin holders have lost around two-thirds of their worth. While the stable coin has recovered at times along its decline, it has now reached its lowest point.

Risk-Off Mood – Terra LUNA Price Prediction

The cause of its steep drops could be attributed to the crypto market’s risk-off mood, which continues to put pressure on crypto coins. This came as the price of Bitcoin and other cryptocurrencies dropped precipitously. Bitcoin has dropped more than 11% in the last 24 hours, reaching $29,944. Although the digital asset has rebounded significantly to $31,390, the most recent low is still more than 50% below the all-time high of $69,000 achieved in November. Cardano (20%), Solana (16%), XRP (13%), BNB (16%), and Ethereum (16%) were among the top ten altcoins that saw double-digit drops as a result of bearish market action (10%).

Within 24 hours, the cryptocurrency market plunged 13%, bringing the entire market cap to $1.37 trillion. This has sent the market into a tailspin. The fear and greed index for the crypto market is currently at 10, down from 11 in the last 24 hours and 27 last week. Unexpectedly, a stable coin was impacted by falling prices as well. After plummeting to $0.6841, Terra USD lost its 1:1 peg to the US dollar. As of press time, the stablecoin has recovered to $0.9.

Stronger US Dollar Continues to Weigh 

On the other hand, the higher US dollar could be driving down cryptocurrency values. The US dollar remained around a two-decade high against its major counterparts on Wednesday, ahead of a crucial inflation indicator revealing how aggressively the Federal Reserve will tighten monetary policy. The dollar index slipped slightly to 103.81 but remained near the week’s high of 104.49, which was hit for the first time since December 2002. Investors will be looking for signs of moderating inflation in the April consumer price index report, which is expected to grow 8.1 percent annually, down from 8.5 percent in March.

Terra LUNA Price Prediction: Can $1 Trigger a Bounce-off?

The LUNA/USD is trading dramatically bearish at $1. However, the bearish doesn’t seem to pause here. The massive sell-off in LUNA is likely to drive its price even below $1. Therefore, one should be very cautious while taking an entry near $1.

A drop below $1 has the potential to drive the LUNA price even lower towards $0.085 support. The RSI and MACD indicators are exhibiting a solid downtrend in Terra. However, now the digital coin has entered the oversold zone.

Closing of candles above $1 can increase investors’ confidence, and thus may drive a slight correction in LUNA. On the higher side, Terra LUNA’s immediate resistance stays at $10 and even $23.

While a break below $1 today could extend the downtrend to $0.85 and $0.64. Good luck!