Terra’s LUNA set to recover, weekly gains in reach

Terra (LUNA) price is finally coming back among the living as it has broken above the opening price of Monday morning and is set to close the week with a daily and a weekly gain. The recovery comes on the back of a bounce at the 23.6% Fibonacci level that has triggered a rally up to $0.000105 thus far. With US equities in the green, it looks the US session will add more coal to the fire and might even see LUNA price hit $0.000107 by the US closing bell this evening.

LUNA set to near tipping point for bulls

Terra price action is on the cusp of pulling off a fierce recovery as it did at the beginning of July as the price is near closing the week on a positive note. With that, it has cost bulls plenty of fuel to go against the current as the strong dollar, and the selloff in stock markets keeps weighing on investors flows. Expect to see a pop higher as US equities are pointing to a bullish open and could rally into the close this Friday evening.

LUNA price first needs to hold the 50% Fibonacci level at $0.000103, with the $0.000104 just above the opening price on Monday as the bar that needs to be lifted. Should LUNA price be able to close above there, bulls are in a perfect setup to rally into the weekend and might see a stretched move towards $0.000112 at the 78.6% Fibonacci level. From there, it is a mere $0.000003 change to hit the double top at $0.000115 and set for a possible full recovery for LUNA price, after the earth shock it underwent when the failed peg with the dollar triggered a domino effect.

LUNA/USD Daily chart

Risk to the downside comes with the exact fourth repetition of what has been unfolding all of July and partial in June already. A false break, close at or below the $1,243.89 hurdle, and we could see a pullback that turns into a squeeze and sets bulls back roughly 15%. Even a break lower below $1,014.30 could see a slide towards $830, while giving up the $1,000 crucial psychological level.