![With $0.16 defended, can Terra [LUNA] extend its rally by another 50%?](https://afrigather.com/wp-content/uploads/2025/12/246847-with-0-16-defended-can-terra-luna-extend-its-rally-by-another-50.webp "with-0-16-defended-can-terra-luna-extend-its-rally-by-another-50.webp")
![With $0.16 defended, can Terra [LUNA] extend its rally by another 50%?](https://ambcrypto.com/wp-content/uploads/2025/12/Terra-Featured-1200x675.webp)
Journalist
Posted:
Terra has gained 226% over the past 9 days, and 45.8% over the past 24 hours alone. It also witnessed high trading volume in recent days.
The rally was likely a result of the Terra Chain upgrade v2.18.
Multi-timeframe analysis highlights bullish Terra potential
Source: LUNA/USDT on TradingView
The weekly chart indicated that the structure had been bullish, for now. A weekly session close above $0.168 would confirm this shift. This swing high was important because it precipitated the previous move down.
The strong trading volume over the past two weeks was reflected in the OBV, which has surpassed the December 2024 highs. This was encouraging for the bulls.
The RSI also signaled that bullish momentum was established with a reading of over 50.
The next horizontal resistances to watch out for are $0.28, $0.51, and $0.72.
Source: LUNA/USDT on TradingView
The bullish outlook was reinforced on the 4-hour chart. The demand zone (cyan box) from $0.148-$0.163 overlapped with the 61.8% Fibonacci retracement level at $0.155.
Additionally, the imbalance (white box) was likely to see a bullish reaction upon a retest.
The confluence of demand zones around $0.16 meant any Terra [LUNA] price dip to this region would present a buying opportunity.
Examining the bearish case
The H4 RSI could form a bearish divergence over the next few days. This would be an early warning of a potential pullback.
If this pullback, combined with high selling volume, pushes prices below the $0.15 area, it would be troublesome for the bulls.
Traders’ call to action: Is it feasible to long LUNA?
The bearish scenario was less likely to play out, due to the bullish weekly and 4-hour timeframe outlooks.
The $0.16 area is also a solid support that bulls should be able to defend. The OBV reflects sustained buying pressure over the past week.
Hence, traders can look to go long in the $0.16-$0.18 area. The Fibonacci extension levels at $0.283 and $0.34 would be the bullish price targets.
Final Thoughts
- The Terra upgrade would bolster the network security and reliability, and has boosted sentiment.
- In the short term, another 30%-50% rally is possible, but it might be preceded by a price dip toward $0.18.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
Akashnath S is a Senior Journalist and Technical Analysis expert at AMBCrypto. He specializes in dissecting price action, identifying key market trends through advanced chart patterns, and forecasting both short-term and long-term asset trajectories.
His distinct analytical method is grounded in his academic training as a Chemical Engineer. This background provides him with a systematic, process-oriented approach to market data, enabling him to analyze the complex dynamics of financial markets with precision and objectivity.
Having actively covered the cryptocurrency space since the landmark 2017 market cycle, Akashnath possesses years of experience navigating both bull and bear markets. This seasoned perspective is critical to his insightful reporting on market volatility and evolution.
As an active market participant, Akashnath enhances his analysis with crucial, hands-on experience. This practical application of his technical skills ensures his insights are not merely theoretical, but are also relevant and actionable for an audience looking to understand and navigate trading opportunities. He is dedicated to educating readers on the nuances of technical analysis, empowering them with the knowledge to make more informed financial decisions.
