Terra presents buying opportunity before LUNA hits $70

LUNA price has performed admirably over the past two weeks, especially compared to the losses the broader cryptocurrency market has suffered lately. Terra has been stuck in a range for almost the entire month of February thus far – but a bullish breakout may be imminent.

LUNA price positioned for a retest of $70, bulls look to take over

LUNA price action of late has been extremely bearish. Since the Wormhole incident, buyers have been reticent about returning to Terra – but that could change very quickly. As a result, LUNA could probably lead altcoins again and continue the bullish expansion phase before its massive selloff.

The hypothetical long entry for LUNA price is a buy stop order at $62, a stop loss at $53, and a profit target at $92. The trade represents a 3.33:1 reward for the risk setup with an implied profit target of over 50% post entry. However, several price levels will prevent a single run-up to the target at $92.

LUNA/USDT $2.00/3-box Reversal Point and Figure Chart

The first price zone of resistance is the current bear market trend line, currently at $68. If LUNA hits $68, then it will convert into a bull market, but a pullback should be expected if that occurs. The second and most likely resistance zone is the bottom of the Ichimoku Cloud (Senkou Span A, not shown) at $70. Again, selling pressure there is projected to be significant.

The long entry is based on a Bear Trap pattern in Point and Figure Analysis. The pattern requires one O to drop below a double-bottom, with the next reversal column of Xs triggering a bullish entry. If confirmed, a likely short squeeze of LUNA price will begin. But downside risks do remain.

If LUNA price dropped to $6, that would complete a Descending Triple-Bottom pattern. While not shown, the projected profit target on that theoretical short scenario is near the $32 value area.