LUNA price could collapse more than 40% if bulls fail to support

LUNA price is up against the same renewed selling pressure of risk-on assets around the globe. But there is some strong signs of bulls stepping up to prevent LUNA from dipping further. 

LUNA price action shows bulls attempting to prevent a major collapse

LUNA price made another push down to a price level identified yesterday (May 4), the neckline of a head-and-shoulders pattern. Bulls, however, have defended against a drop below the neckline. In fact, LUNA has more evidence of clear and active buying to protect against collapse than any other major market cap cryptocurrency. 

The final support level for LUNA price remains at the $77 price level. $77 is the 50% Fibonacci retracement of the all-time high to the low of the February 24 weekly strong bar. $77 is also the final large area within the current high volume node of the 2022 Volume Profile

A close at or below $77 would confirm an Ideal Bearish Ichimoku Breakout because the Chikou Span would be in open space - a condition where the Chikou Span won’t intercept the body of any candlesticks in the next five to ten periods. 

The last time LUNA price saw an Ideal Bearish Ichimoku Breakout was on January 29, 2022 - but prices stabilized. That drop preceded the 155% rally from the $46 to the new all-time high of $119.50. 

LUNA/USDT Daily Ichimoku Kinko Hyo Chart

If bulls want to stave off any further selling pressure or bearish bias, they’ll need to return LUNA price to a close inside the Cloud and above the Tenkan-Sen and Kijun-Sen - approximately the $88 value area. Then, to create a renewed uptrend, bulls will need to push even higher to close at or above $100.