- LUNA price develops bear trap on its Point and Figure chart, indicating a bullish reversal could be coming soon.
- Breakout of a tight trading range could reverse prior losses.
- Downside risks remain but are likely limited.
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.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
Prisma price tanks 25% after nearly $9 million exploit
Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.
Meme coins gain traction after SEC’s partial win in Coinbase lawsuit: DOGE, SHIB, BRETT, POPCAT, BODEN
US SEC pocketed a partial win in its lawsuit against Coinbase, ushering a correction in crypto prices on Thursday. Despite the broad pullback, prices of meme coins like Dogecoin, Shiba Inu and Solana-based BRETT, POPCAT and BODEN increased.
Ondo moves $95 million worth of OUSG assets to BUIDL as tokenized fund attracts $245 million since debut
Ondo Finance (ONDO) announced on Wednesday that it's shifting about $95 million worth of its OUSG's underlying assets to the BlackRock USD Institutional Digital Liquidity Fund (BUIDL).
XRP price stuck below $0.65 resistance, Ripple lawsuit could suffer from Coinbase defeat
XRP price falls slightly to $0.61 on Thursday after its landmark programmatic sales ruling in July, which gave Ripple a partial victory against the US SEC, failed to reverberate in a similar legal battle between the regulator and crypto exchange Coinbase.
Bitcoin: BTC may have recovered, but is it out of the woods?
Bitcoin’s (BTC) upward momentum has shown a significant decline for the past two weeks or so. This development led to a bearish signal on the weekly and an uncertain outlook on the monthly.