How to Spot the Death of a Crypto

What happened to Terra’s LUNA and what can we learn from it?

Photo by Jeremy Morris on Unsplash

The crash of Terra’s LUNA was scary to observe. This post will assess the chart so we can hopefully catch when a crypto’s price may start dropping and when we need to get out quickly.

We will review the LUNAUSDT chart from TradingView.com from different perspectives.

Perspective 1: The macro chart.

The LUNA macro / all-time chart indicated the price action was waining. Two out of three Keltner channels are sloped down, and the PSAR started a downtrend.

The graph from TradingView.com was annotated by the author.

What are Keltner channels and Parabolic SAR?

The Keltner channels help us see the price moment by using tracking the volatility and moving averages. When all three KC lines are curved up, that is a good sign.

The Parabolic SAR shows the trend in the price action. The PSAR dots are below the price and curving up, this is a good sign.

Why are they both helpful?