Market Overview: Terra/Tether (LUNAUSDT) on 2025-12-21

Sunday, Dec 21, 2025 11:22 am ET1min read
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- Terra/Tether (LUNAUSDT) broke above a $0.1055 bearish trendline, closing at $0.1098 after a $0.1129 high.

- RSI near overbought levels (68) and flattening MACD signal waning bullish momentum despite strong breakout volume.

- A bullish engulfing pattern at $0.1038–$0.1093 and 61.8% Fibonacci support at $0.1052 highlight key reversal potential.

- Price remains above critical $0.1080 psychological support, with $0.110–$0.1125 resistance and $0.1052 support as next key levels.

Summary
• Terra/Tether (LUNAUSDT) traded in a consolidating pattern after a sharp late-day rally near $0.110.
• Volume surged during the breakout, confirming strength but RSI suggests potential overbought conditions.
• A bearish trend line from $0.1055 was broken, with price now hovering above key psychological support at $0.1080.
• MACD remained positive but flattening, signaling weakening bullish momentum.
• A potential bullish engulfing pattern formed at the 16:15 ET 5-minute candle, indicating short-term buying interest.

Terra/Tether (LUNAUSDT) opened at $0.1058 on 2025-12-20 at 12:00 ET, hit a high of $0.1129, a low of $0.1011, and closed at $0.1098 at 12:00 ET on 2025-12-21. Total volume for the 24-hour period was 35,167,489.18 units, with a notional turnover of $3,848,129.50.

Structure & Formations


Price action showed a strong breakout above a descending trendline from $0.1055, with a bullish engulfing pattern forming at $0.1038–$0.1093.
Key support levels were identified around $0.1070 and $0.1055, while resistance emerged at $0.110 and $0.1125. A large bullish candle at 16:15 ET (0.1038–0.1093) suggests a potential reversal from recent bearish pressure.

Moving Averages


The 20-period and 50-period moving averages on the 5-minute chart crossed in a bullish “golden cross” pattern during the late-day surge. Daily moving averages (50/100/200) remained in a bearish alignment, but the 50-period line showed a slow upward bias, indicating early signs of a shift in medium-term sentiment.

MACD & RSI


MACD turned bullish during the breakout, but its histogram flattened in the last two hours, suggesting momentum may be peaking. RSI reached 68 at close, near overbought territory, signaling caution for further upward moves. Divergence between price and RSI was not observed, supporting the integrity of the rally.

Bollinger Bands


Volatility increased as price broke out of a narrow Bollinger Band consolidation into the upper band, reaching a 24-hour high. The upper band expanded to $0.1125 by the end of the session, while the lower band was at $0.1030. Price closed near the upper band, indicating strong bullish sentiment.

Volume & Turnover


Volume spiked during the breakout at 16:15 ET, with a single 5-minute candle accounting for $9,749,527.00 in turnover (896,864.2 units). This aligns with the price movement, confirming strength in the rally. However, volume has since declined, suggesting caution from traders ahead of potential pullbacks.

Fibonacci Retracements


Fibonacci levels applied to the latest 5-minute swing from $0.1011 to $0.1129 indicated key support at $0.1070 (38.2%) and $0.1052 (61.8%). Daily retracements suggested $0.1078 as a key level to watch for potential consolidation or reversal.

Looking ahead, the market could test the $0.110–$0.1125 range in the next 24 hours if buying interest remains strong, but a pullback to the 61.8% Fibonacci level at $0.1052 would signal renewed bearish pressure. Investors should monitor volume for divergence and watch for bearish reversal patterns near overbought RSI levels.