- The price of LUNA is at risk of falling to $2.00 due to the formation of a descending triangle pattern.
- Terra and Thorchain (in a contract) top the ten chains indexed for the Terra Phoenix drop.
- LUNA price will invalidate the expected downtrend at $2.00 if it closes the day above the 100-day SMA.
Terra’s LUNA price faces extreme market indecision on Sunday after pulling back from resistance at $2.60. This downward pressure it is facing will likely extend into the new week. Technical analysis using carefully chosen chart patterns and indicators points to a 15.50% decline to $2.00.
Terra and Thorchain leading the Terra Phoenix drop
Terra, a cryptocurrency ecosystem powered by LUNA, has announced the success of its Terra Phoenix airdrop. According to the airdrop stats, Terra & Thorchain (in a contract) came out on top, claiming 50.50% of their allocated tokens.
Polygon came in second with 85,674, representing 20.8% of tokens allocated to the network. Ethereum closed the top four, claiming 6.90% of the 4,877,832 tokens awarded.
The Terra Phoenix airdrop was designed to redistribute 19,504,909 LUNA tokens from the community pool to users who did not get the correct allocation during Genesis.
Terra Phoenix Airdrop
As the Terra development team struggles to repair its image after the May crash, LUNA’s price could tap into the growing liquidity and post a rally. However, the general technical outlook suggests that the rally may have to wait for sidelined investors to jump on the bandwagon at a lower price level.
LUNA price maintains a downward trend
LUNA price holds at the 50-day SMA (Simple Moving Average), red, despite the 100-day SMA, blue cap move immediately higher. A break above the downtrend line could see LUNA price avoid the announced retracement. Nonetheless, the low trading volume coupled with bearish market conditions suggests a downtrend extending below the declining triangle.
LUNA/USD four-hour chart
Descending triangles have a bearish bias, but traders should wait for a break below x-axis support before entering short positions. A move of 15.50%, a distance equal to the widest points of the triangle, is expected if the triangle matures.