Terra (LUNA) and Avalanche (AVAX) Technical Analysis: Off to a Solid Start?
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Terra (LUNA)
The goal of the Terra blockchain is to offer fast and cheap settlements using LUNA as the main currency.
Past Performance of LUNA
LUNA's performance in H2 2021 was exceptional. After surging 20X, prices are beginning to cool off, reading from the LUNA technical analysis. Presently, sellers are beginning to take charge, forcing the coin lower since the Dec 27 all-time high of $103.33.
Terra Technical Analysis
The path of the least resistance is, overall, northwards. However, following the cool-off at the end of last week, sellers appear to be in control in the short term. Even still, LUNAUSDT has support at around $78 and the middle BB. For optimists, as long as LUNA coin prices are above the flexible support line, aggressive traders should load the dips, targeting $103—last year's highs in a buy trend continuation pattern.
Day-Ahead and What to Expect
LUNAUSDT prices are under pressure, reading from the current candlestick arrangement. Even though the uptrend remains, the cool-off at the tail end of last year signals weakness.
A close below $78 may force the LUNA coin towards $55—the 50 percent Fibonacci retracement of H2 2021 — in a retracement. Meanwhile, an encouraging reversal of last week's losses might trigger more demand above $100 in continuation of last year's surges.
Avalanche (AVAX)
Avalanche, the smart contract platform, seeks to unseat Ethereum. The native token AVAX is central to its operations.
Past Performance of AVAX
After sharp gains in the second half of 2021, Avalanche coin prices are cooling off. AVAX coin prices might be steady but capped between crucial support and resistance lines at $75 and $145, respectively.
Avalanche Technical Analysis
Technically, the AVAXUSDT price formation is bullish. This preview holds as long as AVAX toke prices are trending above $75. Reading from this, traders might find entries in lower time frames to set the target at $145. Even so, there could be fractures if AVAX coin prices slide below last week's lows of around $97. In that case, AVAX may drop to $75 in a retracement.
Day-Ahead and What to Expect
Below $97, expected support lies at $90—the 38.2 percent Fibonacci retracement level of the H2 2021 trade range. Whereas, if Avalanche coin bulls sustain prices above $100, the odds of AVAXUSDT rallying to $145 would be high.