Terra’s LUNA 2.0 price could pump to $2.50 under these circumstances
- Terra's LUNA 2.0 is up 4% on the week.
- An influx of volume accompanies the recent upward move.
- Invalidation of any uptrend potential is a breach below $2.36.
Terra's LUNA 2.0 price could be preparing for rally levels that have been identified to gauge the strength of the bulls.
LUNA 2.0 shows strength
Terra's LUNA 2.0 price is showing optimistic signals during the final trading week of October. On October 25, the digital currency rallied 4%, establishing several bullish engulfing candles in the process. The bulls successfully breached the 8-day exponential moving average and are now testing the same indicator for support.
LUNA 2.0 price currently auctions at $2.40 as a profit-taking consolidation takes place post-rally. The Relative Strength Index shows LUNA returning to the ideal bullish entry territory after breaching oversold market conditions during a 4% hike.
LUNA 2.0/Perpetual Futures 1-Hour Chart
If the market is genuinely bullish, LUNA 2.0 should be able to rally near these levels with bullish targets at the 21-day simple moving average near $2.52 and potentially $2.56 to mitigate bearish liquidity levels.
Invalidation of the bullish idea depends on the swing before the 4% rally at $2.36 remaining unbreached. If the bears tag the invalidation point, the additional downtrend move targeting $2.20 could occur. Such a move would result in an 8% decrease from the current Terra LUNA 2.0 price.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
