- LUNA price set to complete bearish triangle.
- Expect to see Luna price break a fundamental level but quickly be spun around for a bull run.
- With a 65% gain on the horizon, it will be hard for bulls to resist not getting involved.
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Top 3 meme coins price prediction Dogecoin, Shiba Inu, Bonk: Memes face steeper correction than Bitcoin
Dogecoin eyes February lows after nearly 23% decline in the past seven days. Shiba Inu could plummet another 13% amid the broader crypto market correction. Bonk price is likely to regain lost ground as technical indicators point at recovery.
XRP sustains above $0.50 as traders digest news of Ripple XRP Ledger entry in the Japanese market
Ripple (XRP) sustained above $0.50, a key support level, on Wednesday. XRP price is down nearly 6% in the past ten days. The altcoin is in a confirmed downward trend, and wiped out all gains since February.
Optimism OP struggles to gain momentum despite alleged $90 million OP purchase by a16z
Venture capital firm a16z has purchased $90 million in OP tokens under a two-year vesting period, Unchained crypto reports. Sources told Unchained Crypto that Optimism has done well and the project is still doing airdrops.
Sei price action forecasts an opportunity to accumulate SEI Premium
Sei (SEI) price is at a crossroads and could trigger a steep correction or potential bounce after setting up an all-time high (ATH) of $1.145 roughly a month ago. Based on the Bitcoin price action, a potential bounce will likely occur anytime now.
Bitcoin: BTC’s next breakout could propel it to $80,000 Premium
Bitcoin’s (BTC) recent price consolidation could be nearing its end as technical indicators and on-chain metrics suggest a potential upward breakout. However, this move would not be straightforward and could punish impatient investors.