Market Overview: Terra/Tether (LUNAUSDT) on 2025-12-24

Summary
• Price dipped below key support of $0.1065 and failed to recover, suggesting bearish pressure.
• Volume spiked during the sharp drop to $0.1043, confirming bearish momentum.
• RSI entered oversold territory, indicating potential for a near-term bounce.
• Bollinger Bands expanded as volatility increased, reflecting heightened uncertainty.
• A potential bullish engulfing pattern emerged near $0.1046, offering a short-term reversal signal.

The Terra/Terra (LUNAUSDT) pair opened at $0.1080 on 2025-12-23 at 12:00 ET, traded between $0.1084 and $0.1043, and closed at $0.1054 on 2025-12-24 at 12:00 ET. Total volume for the 24-hour period was 62,901,263.03, with a notional turnover of approximately $6,696,609 (calculated from volume × average price range).

Structure and Formations

The price action revealed a key support zone at $0.1065, which broke decisively during the midday drop to $0.1043. A potential bullish engulfing pattern formed near $0.1046, with a long lower shadow and a full-bodied reversal candle. The 20- and 50-period moving averages on the 5-minute chart crossed below the price, reinforcing the bearish bias.

Momentum and Volatility

The RSI reached oversold territory around 30 during the decline, suggesting a possible bounce back toward $0.1055–$0.1060. The MACD turned negative with bearish divergence, aligning with the downward drift. Bollinger Bands expanded significantly during the drop, indicating increased volatility and uncertainty in the market.

Volume and Turnover

The largest volume spike occurred during the sharp decline to $0.1043, where the volume surged to over 1.36 million. Notional turnover also rose during that period, aligning with the price move and confirming bearish momentum. However, subsequent volume remained below average, suggesting a lack of conviction in the rebound.

Key Levels and Fibonacci Retracements

The 61.8% Fibonacci retracement level from the high of $0.1084 to the low of $0.1043 sits at $0.1059, which could act as a near-term resistance. The 38.2% retracement at $0.1051 may serve as a support/resistance pivot depending on the next 24 hours' action. Broader daily chart support near $0.1060 could attract buyers.

It appears that the market is consolidating near the 38.2% retracement level, which may offer a low-risk entry for traders expecting a bounce. However, a break below $0.1045 could extend the correction, testing previous intraday support levels. Investors should watch for volume confirmation on any reversal attempt and remain cautious of further downside risks.