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Now Terra LUNA has to push above daily MAs

Are the Cryptos Terra LUNA and Polkadot Resuming the Uptrend?

Posted Tuesday, February 8, 2022 by
Skerdian Meta • 2 min read

Now Terra LUNA has to push above daily MAs

Cryptocurrencies went through a major retreat in the last three months, with Terra LUNA and Polkadot losing more than half of their value. But this retreat might have come to an end now, as cryptocurrencies have gained confidence again in the last few days, making some decent gains. Bitcoin is moving towards $45,000, after reversing at $33,000, so it seems like this might not be just another retrace before the bearish trend resumes, as we have seen in the last few months.

Terra LUNA Pushes Above the First Obstacle

Terra LUNA had an amazing run from July until the end of December last year, pushing higher even as the market found itself in the middle of this major retreat. But, the continuing negative sentiment in the crypto market, along with the controversy with Wonderland, has started weighing on this cryptocurrency, sending it down from $103 to $43.

However, Terra LUNA remains one of the major names in the DeFi scene, behind Ethereum, regarding total value locked (TVL), despite a considerable drawdown as a result of the Wonderland controversy. So, the demand for LUNA coins remains high, and it has bounced off the 200 daily SMA (purple) now, pushing above the support/resistance zone around $55. But buyers still have to take out the 50 SMA (yellow) and the 100 SMA (green) above for the trend to be considered bullish again, so let’s see if the sentiment in the crypto market remains positive.

Polkadot Facing a Major Support/Resistance Zone Upwards

Can Polkadot buyers push above the resistance?

Polkadot reversed from $55 in early November, declining to $16 in the last week of January, but after trading near the lows for some time, it has started to make gains as well, although DOT/USD is now facing the previous support zone around $23, where the 50 SMA (yellow) also stands.

This will be a major test for Polkadot. If buyers push above these resistance indicators, there will be a real opportunity for buyers. Until then, the trend is still bearish, but the positive thing is that the sentiment in the market is improving.