LUNA is down about 84% within 72 hours of the turmoil surrounding the stablecoin UST. UST de-pegged the dollar and fell below $1, to $0.65, before recovering to $0.94 and falling again towards $0.7.

Support levels don’t seem to really matter for LUNA at this point as selling pressure has been extreme. Cardano and Avalanche were also in a downtrend.

Terra (LUNA)

Source: LUNA/USDT on TradingView

The A/D indicator has shown high sales volume behind LUNA in recent days. The Awesome Oscillator has seen weakening bearish momentum even as the price hit a lower low. Does this bullish divergence justify a buy LUNA? Absolutely not! Long-term investors can try to buy some LUNA at or even under $10, such as Do Kwon tweeted that a recovery plan for UST was just around the corner.

The time to short LUNA was when it first fell below $70. In the short term, a long or short position on LUNA can be very risky given the market volatility. Long-term investors should look to the dollar cost average for a position on LUNA with confidence in a recovery in the coming weeks.

Cardano (ADA)

Source: ADA/USDT on TradingView

Cardano retested the USD 0.69 level as resistance from the previous day. The RSI attempted to climb past neutral 50 to signal a shift in momentum towards the bulls but failed. The CMF was also below -0.05, suggesting significant capital outflow from the market.

The moving averages also showed bearish momentum as the 21-SMA (orange) moved below the 55-SMA (green), which has also acted as a resistance in recent days. The next horizontal support for ADA is at $0.57.

Avalanche (AVAX)

Source: AVAX/USDT on TradingView

The market structure was decisively bearish as the price set out for a series of lower highs and lower lows over the past week, except for a breakout above the $64 level which was quickly reversed. The Fibonacci Retracement Levels (Yellow) showed that AVAX bulls have made a good effort to push prices above $46.7, the 38.6% retracement level. However, they were rebuffed after a day of skirmishes.

This meant that the $40 and the $35.23 (27.2% expansion level) were the next strong support levels to watch out for. The OBV did bounce in recent days, but the RSI was back below the neutral 50 line to signal strong bearish pressure.

This post LUNA, Cardano and Avalanche Price Analysis: May 11

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