• LUNA price is in cooling down after its recent 41% explosive move. 
  • A bounce off the $1.85 to $2.08 demand zone could induce another rally to 2.80.
  • A daily candlestick close below $1.85 will invalidate the bullish take.

LUNA price shows a sign of healthy retracement after an egregious spike in buying pressure that triggered a quick and swift run-up. The ongoing pullback will provide investors with another chance to rally. 

LUNA price ready for more gains

LUNA price sliced through the two-month declining resistance level on August 1 by triggering a 41% ascent. This move also collected the buy-stop liquidity resting above the equal highs formed at $2.19. 

While this rally fulfilled its objective, it is now undergoing a correction that could provide buyers with another opportunity. In fact, LUNA price has retested the $1.85 to $2.08 demand zone twice, so an upswing is likely to happen soon.

Assuming the buying pressure spikes again, this time, LUNA price could attempt a retest of the $2.80 resistance barrier. This move would represent a 38% ascent and is likely where the upside is capped for the altcoin.

Therefore, interested investors can keep a close eye on the reaction off the said demand zone.

Although unlikely given the current market conditions, a flip of the $2.80 level into a support floor will be indicative of the surging buying pressure. If this footing holds, LUNA price could eye the liquidity resting above $3.51.

This move would constitute a 72% gain from the $2.01 level.

LUNA/BUSD 1-day chart

LUNA/BUSD 1-day chart

Regardless of the bullish outlook, if LUNA price breaks below the demand zone’s lower limit at $1.85, it will invalidate the bullish thesis. Such a development could also open the path for a further downswing, where bears could trigger a correction to $1.60. 

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

XRP struggles to make comeback above $0.50 as Ripple CEO will face trial

XRP struggles to make comeback above $0.50 as Ripple CEO will face trial

XRP remains range-bound under the $0.50 resistance on Friday after news that Ripple CEO Brad Garlinghouse will have to face a trial in California regarding some statements he made in 2017. 

More Ripple News

Bitcoin Weekly Forecast: Is BTC out of the woods?

Bitcoin Weekly Forecast: Is BTC out of the woods?

Bitcoin appears poised for a slight decline this week, influenced by factors such as the German Government's deposit of over 1,700 BTC in exchanges, decreasing outflows in US spot ETFs, and on-chain data indicating no signs of BTC DeFi liquidation.

More Bitcoin News

1Inch looks poised for downward correction

1Inch looks poised for downward correction

1inch price moves lower by 3% on Friday after being rejected by the 200-day Exponential Moving Average on Thursday. On-chain data shows a decline in Development Activity, signaling negative sentiment among 1INCH investors. 

More Cryptocurrencies News

LayerZero ZRO token tumbles 24% in 24 hours, hit by airdrop-related controversy

LayerZero ZRO token tumbles 24% in 24 hours, hit by airdrop-related controversy

LayerZero’s ZRO token airdrop went live on Thursday, with a claiming mechanism called Proof of Donation. The team requires 10 cents in USDC, USDT or Ether per ZRO token with the aim to weed out manipulative Sybil entities. 

More Cryptocurrencies News

Bitcoin: Is BTC out of the woods?

Bitcoin: Is BTC out of the woods?

Bitcoin (BTC) appears poised for a slight decline this week, influenced by factors such as the German Government's deposit of over 1,700 BTC in exchanges, decreasing outflows in US spot ETFs, and on-chain data indicating no signs of BTC DeFi liquidation. Technical indicators suggest BTC might experience a 3% correction in the near term before continuing its upward trajectory.

Read full analysis

BTC

ETH

XRP