With $0.16 defended, can Terra [LUNA] extend its rally by another 50%?

ambcryptoPublished on 2025-12-11Last updated on 2025-12-11

Abstract

Terra (LUNA) has experienced a significant rally, gaining 226% over 9 days and 45.8% in the past 24 hours, driven by the recent v2.18 network upgrade. The bullish momentum is supported by strong trading volume and a weekly close above $0.168, which confirms a structural shift. Key resistance levels are identified at $0.28, $0.51, and $0.72. The $0.16 area, overlapping with a demand zone and the 61.8% Fibonacci retracement, presents a buying opportunity. While a bearish divergence on the 4-hour RSI could signal a pullback, the overall outlook remains optimistic. Traders are advised to consider long positions in the $0.16-$0.18 range, targeting $0.283 or $0.34. A short-term rally of 30%-50% is possible, potentially after a dip toward $0.18.

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

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.

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

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