Terra’s LUNA 2.0 price will melt faces once it breaches this vital price level

Terra (LUNA) price is ripe for the taking as its bear cycle is almost coming to an end. The completion of a bearish triangle means LUNA price is now poised for a break to the downside, with bulls waiting at a double belt of support, ready to trigger a bear trap and squeeze sellers all the way back towards levels from the beginning of June. With that move, just shy of 47% of gains are ripe for the plucking. 

LUNA price bears low-hanging fruit worth 47% in gains

Terra price has been trading lower at a solid pace, not showing any signs of a turnaround, despite a brief revival when it popped back above $11. But time – one of the most valuable commodities when trading – looks to be on its side as investors start to shrug off the massive bad publicity the altcoin received after it failed to maintain its peg against the dollar. It was a wake-up call for the markets, and members at Terra are dealing with the issue, brushing up their image to the outside world, trying to restore faith in its use and existence.

LUNA price will complete the next bearish cycle with the completion of the triangle and then break below $4.10. That break will, however, be short-lived as just below there at $3.80, the next support level awaits, and short-sellers will cramp at the sight of the Relative Strength Index (RSI) trading in oversold again, encouraging them to close out their short orders and take profit. Expect a rebound off $3.80 and a swing to the upside, rallying towards $6.02 in a long squeeze. Bears will get trapped by this move and start to unwind their positions, triggering the rally.

LUNA/USD hourly chart

Downside risk could result if $3.80 fails to hold. In such a scenario the RSI would enter deep into oversold. It is hard to predict where a more moderate support level could be present. Below that, expect to see support come in at around $2.00. At that price the RSI will be too far in oversold territory to see much further selling – profit taking by bears is more likely, followed by buying as one of the repercussions that follows on.