by Eliman Dambell
Despite Terra buying $1.5 billion worth of BTC this week, LUNA slipped to a six-week low to start the weekend. Overall, crypto markets remained in the red, however ALGO was one of the rare exceptions to record significant gains.
ALGO was easily one of the biggest gainers during Saturday’s session, as prices rose by as much as 15% on the day.
Following yesterday’s low of $0.63, ALGO/USD rallied to an intraday peak of $0.745 to start the weekend.
The surge saw prices move from long-term support of $0.65, to now hovering marginally below resistance of $0.75.
This current ceiling hasn’t been properly broken since March 21, when prices made their way to a high of $0.95.
Although bulls will be hopeful of a break above this current resistance, there remain some notable obstacles in the way.
Once of which being the current resistance level in the 14-day RSI of 52. However, should this be cleared, we will likely see an influx of ALGO bulls.
Despite continuing to buy billions of dollars worth of BTC for its reserves, LUNA fell for a third straight day on Saturday.
This latest drop saw prices fall to an intraday bottom of $72.34, which is the lowest point prices have hit since February 28.
Following a false breakout of resistance at $86 on Thursday, bears have continued to pile on the pressure on LUNA/USD, with today’s fall moving below support at $78.
As of writing, the $72 level seems to be acting as an interim floor, with the bullish engulfing candle that followed February’s low a key reason why some traders are optimistic.
Although we might not see a $20 surge in price as seen on that occasion, if this does mature into being a firm floor, it could help inspire more LUNA bulls to return.
Why haven’t we seen any sizable gains in LUNA despite it building reserves with BTC? Let us know your thoughts in the comments.
Eliman brings a diversified point of view to market analysis, having worked as a brokerage director, retail trading educator, and market commentator in Crypto, Stocks and FX.
Image Credits: Shutterstock, Pixabay, Wiki Commons
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