Market Overview for Terra/Tether (LUNAUSDT)

Summary
• Price rallied from 0.0953 to 0.0986 amid increasing bullish momentum.
• A bullish engulfing pattern formed at 0.096–0.0976 after a consolidation phase.
• Volume surged past 1.6M, confirming strength in the breakout move.
• RSI reached overbought territory, suggesting short-term pullback risks.
• Bollinger Bands widened, reflecting heightened volatility and active trading.

Terra/Tether (LUNAUSDT) opened at 0.0953 on 2026-01-05 12:00 ET, reached a high of 0.0986, and closed at 0.0983 at 12:00 ET on 2026-01-06. The pair traded on a volume of ~20.4M and a turnover of ~196,000.

Structure & Formations

The 5-minute chart showed a clear bullish breakout after consolidating between 0.0953 and 0.0975. A strong bullish engulfing pattern developed around 0.096–0.0976, followed by a test of the 0.0973–0.0978 range, where price found support and bounced. Key support levels appear at 0.0964 and 0.0958, while resistance is at 0.0981 and 0.0986.

Moving Averages

Short-term 20-period and 50-period moving averages on the 5-minute chart have crossed above price action, reinforcing bullish momentum. Daily 50/100/200 EMA lines remain in a bullish alignment, with price staying above all three.

Momentum Indicators

RSI on the 5-minute chart reached overbought levels, peaking near 70, suggesting possible short-term profit-taking. MACD is positive and trending upwards, with the signal line lagging, which could signal sustained buying pressure.

Volatility & Bollinger Bands

Bollinger Bands have widened significantly in response to the breakout. Price has spent most of the session outside the upper band, indicating strong directional bias and heightened volatility. This expansion may precede a tightening phase, signaling a potential consolidation period.

Volume & Turnover

Volume surged to over 1.6M during the key breakout phase, confirming the strength of the move. Notional turnover aligned with the volume increase, showing no divergence. The largest single 5-minute candle accounted for ~1.5M in volume and ~15k in turnover.

Fibonacci Retracements

Applying Fibonacci to the key 0.0953–0.0986 swing, price found a minor pause near the 61.8% retracement level (~0.0972) before continuing higher. This level may act as a dynamic pivot in the next 24 hours.

The pair appears poised to test 0.0985–0.0990 in the short term, but traders should remain cautious of overbought conditions and potential pullbacks. A retest of the 0.0971–0.0973 range is likely, with the potential for a continuation or consolidation.