Terra (LUNA) at risk of 50% drop if bearish head-and-shoulders pattern plays out

You know what's not fun? 50% drops. Terra might be at risk of one.

H&S patterns appear when the price forms three peaks in a row, with the middle peak higher than the other two . All three peaks come to a top at a common price floor called the"neckline."

Traders typically look to open a short position when the price breaks below the H&S neckline. However, some employ a"two-day" rule where they wait for the second breakout confirmation when the priceMeanwhile, the ideal short target for traders comes out to be at length equal to the maximum distance between the head and the neckline.

LUNA's daily momentum indicators, primarily the relative strength index and the money flow index , have both entered their respective oversold regions, which some might consider to be a buy signal. CRYPTOPIKK recognized that they could prompt the LUNA price to rebound but said"the trend still seems [to be] heading down."

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