Why is LUNA underperforming today?

LUNA is the worst performer amongst the top 10 cryptocurrencies over the past 24 hours.

The cryptocurrency market has performed well over the past 24 hours. The broader market has added more than 2% to its value so far today, but the total market cap remains above $1.8 trillion.

Bitcoin is up by more than 2% so far today and is trading above the $41k level. Ether has also crossed the $2,600 resistance level and could look to rally higher over the coming hours.

However, LUNA, the native token of the Terra ecosystem, is currently down by less than 1% so far today. LUNA is currently the worst performer amongst the top 10 cryptocurrencies by market cap as it is the only one trading in the red zone. 

There is no major catalyst behind LUNA’s poor performance compared to the broader market over the past 24 hours. However, with the market slowly recovering from its recent slump, LUNA’s value could soar higher soon.

Key levels to watch

The LUNA/USD 4-hour chart is currently bearish as the coin has underperformed so far today. However, the technical indicators show that LUNA’s value could increase before the end of the day.

The MACD line is below the neutral zone, indicating that the bears remain in control of the market. The 14-day relative strength index of 57 shows that LUNA is no longer in the oversold region.

At press time, LUNA is trading at $86 per coin. If the broader market continues to recover, LUNA could rally past its first major resistance level at $94.7 over the next few hours. However, the next resistance level at $103 should limit any upward movement in the short term.

On the other hand, if the bears remain in control, LUNA could drop below the $70 support level soon. However, LUNA should steer clear of the second major support level at $72 over the coming hours.