Terra's LUNA price hits target 1, should the bears hold or reverse?
- Terra's LUNA price briefly falls below the June 18 swing low at $1.61.
- LUNA price accomplishes last week's bearish trade setup for a 30% decline.
- Invalidation of the bearish trend remains a breach above $2.78.
Terra's LUNA price accomplishes the short-term bearish trade setup written on July 6. It is best to take profit as market conditions could get volatile.
LUNA price hits Target 1
Terra's LUNA price could continue falling, but at the current time, placing an entry is ill-advised. It was mentioned in last week's bearish thesis that the LUNA price was setting up for a 1-1 trade setup targeting the June 18 swing lows at $1.61. The prophesized 30% decline from $2.17 took place shortly after the thesis was posted and was fully actualized on July 12 as the bears forged a new low at $1.48.
Terra's LUNA price currently trades at $1.72. The bears have established a bullish hammer candlestick on the 6-hour chart. There is no reason to believe in a macro count for the LUNA price, but the bulls could reroute towards last week's entry-level to liquidate any traders who may have moved their risk to break even.
LUNA/USDT 6-Hour Chart
Thus, it is best to take profit. The LUNA price could continue heading south towards $1.00, but more evidence must be displayed before issuing potential entries.
Invalidation of the bear trend remains at $2.78 per last week's setup. If the bulls can breach this barrier, they could trigger a bull run towards $5.00, resulting in a 191% increase from the current LUNA 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.
