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LUNA price approaches a launchpad, but will buyers come together?

  • 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. 

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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