Terra (LUNA) price is set to jump massively on a technical breakdown in the correlation between LUNA price and the dollar. Usually the Terra price is inversely correlated with the dollar but at the moment the dollar index is up for the day and LUNA price action is gaining as well. With several central banks intervening and trying to break the strongness of the dollar, cryptocurrencies could see some more tailwinds emerge that should see LUNA price action push higher.
Terra price action is a picture that could point to a big game changer in cryptocurrencies. During the European trading session, although the dollar index is stronger, the dollar itself is not up in all of its major pairs. Next to the yen and the yuan, for example, the dollar is weakening as several central banks are starting intervention to break the back of the greenback’s strength. This coordinated attack is triggering a decoupling in cryptocurrencies against the dollar, as LUNA price action jumps while the DXY gains points.
LUNA price could be set to move up quite rapidly as traders plot the Fibonacci levels and target them as possible profit taking and entry points. It would probably be best to go long either now or on a break above $0.000103, at the 50% Fibonacci level. From there, traders will want to strap in for the rally up towards $0.000115, which looks to be a given to be hit on the back of this big dislocation from the dollar.
LUNA/USD Daily chart
Risk to the downside, of course, comes with that same dollar strength as the dislocation from its usual correlation might be short-lived. In case the dollar reaffirms its grip on all major pairs, as well as cryptocurrencies, expect to see those pairs catch up on the counter move during the dislocated portion, which means more room to go to the downside. That would mean for Terra price, for example, a quick push back below $0.000100 towards $0.000095 or even $0.000088.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Lido DAO price appears to be moving north while the rest of the market succumbs to Bitcoin’s lacklustre recovery. As the market may be setting up for another downswing, a risky countertrend opportunity is displayed within the LDO technicals.
JP Morgan Chase, Wells Fargo, Bank of America and Silvergate Bank were potentially exposed to FTX exchange before its liquidity crisis. FTX contagion spreads wider as new revelation from the bankruptcy filing lists banking giants.
Terra's Luna Classic price heads south in a stair-step fashion. Currently, the technicals are at a make-or-break point. The next move will likely define the otucome for the remainder of the week. Key levels have been identified to gauge LUNC's next potential move.
Polygon ranks third in top DeFi projects, based on its revenue. Polygon has witnessed a spike in user activity following the FTX exchange crash and bankruptcy. Analysts retain their bullish outlook on MATIC price, the token of the Ethereum-scaling solution.
Bitcoin price reveals that its quick recovery rally is coming to an end as it faces a critical hurdle. This development has pushed BTC to slide lower and could result in a consolidative structure over the next few days.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, clients or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.