Terra(LUNA) Anchor Protocol (ANC) & Mirror Protocol (MIR) quick look:
Terra is a blockchain protocol that supports stable programmable payments and open financial infrastructure development. It is supported by a basket of fiat-pegged, seigniorage share-style stablecoins which are algorithmically stabilized by the Terra native cryptocurrency, LUNA. According to terrablockchain.org, Anchor is a savings protocol offering low-volatile yields on Terra stablecoin deposits. The Anchor rate is powered by a diversified stream of staking rewards from major proof-of-stake blockchains. Mirror allows for trading on synthetic markets that track real-world asset prices- potentially erasing barriers of foreign market exchanges for trading of certain stocks and other assets.
What do the charts say?
Terra (LUNA) charts-
EMAs on daily
10EMA-gold, 89EMA-green, 200EMA-white.
The EMAs represent an uptrend that is potentially holding off the 200EMA. The 89(green) is also respected during different retracements. Consistently remaining above these 2 EMAs paints the picture of an uptrend with reasonable retracements. The 200EMA currently around $69 would be the lowest point at which this uptrend would still be following its upward pattern; breaking through that level would put a question mark on this trend as far as the EMAs are concerned. Great entry points could be set off the 200 or the 89 into the future for Luna.
Fib levels/key levels
Key levels of support/resistance are represented as purple boxes- the orange arrows show the areas from which the levels were drawn.
The market using this recent level around $77 as support again in mid April while creating the largest green candle in months is a good sign this level wants to hold into the future. The recent turnaround was also between 50% and 61.8% retracement on Fib tool. An entry point approaching this area would be great if the market returns.
The orange channel depicts a support level between current price and roughly $82 on the market. If the steep uptrend takes off, then we may only return to this support level and it could be used to set an entry point and potentially get on the bus.
The blue shows the lowest level of support around $60.
Both could also give targets to the upside to take profit before the resistance would be anticipated- based on the previous action within the channel and how the market respects parallel lines or the same angle on both sides.
Bollingers/RSI on daily -
Bollingers median orange, 1, 20- upper red, lower green. 2, 20 upper/lower both blue
The 2sigma Bollingers with a 20period dictate a very strict range the Luna market has remained in. This 2sigma range becomes the lowermost point from which I can reasonably expect the market to push back upward. A trend holding below this level would indicate a fast drop and call for a reevaluation of the asset; until then, the bottom 2sigma Bollinger becomes a premium entry at any time in this uptrend.
The 1sigma could be used to set entries and targets within this trend. An entry between the bottom one sigma in green and the bottom of the 2sigma is a great way of identifying an entry point if you do not have a key level present. Currently that range is between $82.13 and $72.66. Using Bollingers to find an entry point creates a dynamic range that reacts to the volatility of the market. When price action speeds up the Bollingers tend to expand more, and using them for entries would call for a lower price during those times; in other words you account for volatility during your entries.
RSI at 48 is relatively balanced- doesn't scream that we are stretched to the top or bottom in this case.
Overview/Points of confluence/entry points/ and targets for scale-out potential
All charts are pointing to an uptrend for Luna. The further away you ask for an entry, the less likely you are to be picked up. Balancing in a few different looks can paint a clear perspective of how risky asking for certain entries can be. You get an expectation of where an order is likely to get picked up, and also how far the market might go when it picks up the order.
Using the 2sigma we can see that an order under $72 is unlikely to be picked up in the near future, or if Luna continues its uptrend. If you are looking to scale into Luna, then a position between $82 and $72 could be a great option based on the 89 and 200EMAs, channels, and Bollinger bands. You might even take an order close to market with how we've just used a level of support and a 0.618retracement to push forward, but I'd recommend leaving room in your entry for the market to pullback a bit. If the blue channel holds, then this market could pull back as far as $60 and still respect its previous level of support.
On the upside- potential targets become the $100 mark where resistance was previously shown, as well as the ATH area just short of $1.20. Currently $101.06 is the upper 1sig Bollinger level that depicts a great place to begin scaling out at any time if you do not have set targets.