Are Terra LUNA and Polkadot Crypto Starting to Reverse Upwards?

Polkadot has turned quite bearish during this 3-month bearish period in the crypto market, although the decline might have come to an end in the crypto market. Major cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), are crawling higher, after losing more than half their value, while Polkadot and Terra Luna are also starting to reverse. Could this be the big bullish reversal we’ve all been waiting for?

Terra Daily Chart Analysis – The 200 Daily SMA Holds as Support

Terra LUNA coin was extremely bullish from August until the end of November, increasing from $5 to $103, even in November, when the crypto market was turning bearish. But the situation got worse for cryptocurrencies, and the sentiment in Terra LUNA also turned negative.

This digital coin has lost more than half its value, falling to $43 yesterday, as it pierced the 200 daily SMA (purple). However, the price closed above that moving average, so there was no break. The 200 SMA is acting as support now, and yesterday we saw a bounce off that moving average. But, we are not seeing a follow-through today, which is not a positive signal.

Regarding the total value locked (TVL), Terra remains at number two, behind Ethereum, but the TVL has decreased by 25% since the beginning of last week. This came after it was revealed that Wonderland’s treasury manager is Michael Patryn, which is not a very trustworthy name in the industry. Terra is connected to Wonderland through Magic Internet Money (MIM), so this is negative news for Terra. But, the decline has stalled for LUNA/USD now, so let’s see if it can turn bullish from here.

Polkadot Daily Chart Analysis – DOT Facing a Big Hurdle at $23

DOT coin will now face the support as resistance, together with the 50 daily SMA at $23

Polkadot has formed an inverted V-shape, after the bullish trend from August until November, while in the last three months the decline has been quite similar. Polkadot has auctioned five parachains, and Acala, which increases the interoperability of the blockchain, went live a week ago.

One of the winners in the Polkadot parachain auction, Astar Network, has also raised $22 million in its latest funding round, which will help the network build interoperability between Layer 1 blockchains. So, the fundamental side seems solid for Polkadot, and it will surely resume the uptrend again, which might actually be starting now. So, we are following this coin and might open a DOT/USD buy signal.

DOT/USD