The Recently Crashed Terra/USD Appears to Be Recovering on the 2-hour chart

TerraUSD experienced a sudden price crash which started on the 9th till 13th May. However, between the 14th and 15th of May, signs of recovery have been seen. TerraUSD, being a stable coin is not meant to be this volatile. It is expected to be pegged at $1, but at the present, it is trading at $0.1680 (that is about an 83% differential fall from its original price). On the 13th, the market had its lowest dip so far at about $0.041, which now acts as its new support level.

The Relative Strength Index (RSI) indicates 43.4% which is a down-trend because it is below the 50% threshold: that is on the 2-hour chart. And on the daily chart, the reading on the RSI indicator has gone far below the oversold region. However, a price rebound may be expected at this level of the RSI.

The Moving Average Convergence and Divergence (MACD) also shows that UST might be on its rebound. The histogram part of the MACD indicator shows that the present up-trend recovery might be weakening. In addition to that, is the fear that the slower moving average curve is about to catch up with the faster moving average curve of the MACD; once that happens UST’s value might even fall below the present support of $0.041.

 

Teach yourself technical analysis: Technical Analysis

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  James Cummings

• 

  Chrisoil

• 

  Alpesh Patel

• 

  Peter Gold