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This is where LUNA 2.0 price recovery will land

  • LUNA price showed restraint and stayed above $1.69 even as BTC crashed below $18,000.
  • The ongoing bounce is likely to continue until the $3.50 level is reached. 
  • A four-hour candlestick close below the $1.69 support level will invalidate the bullish thesis.

LUNA price has been trading below the larger range since its breakdown on June 8. However, the recent surge in bullish momentum could push Terra up to retest the said level. 

LUNA price stays steady

LUNA price set a range, extending from $3.50 to $10.20 as it rallied 190% in under four hours. This massive run-up is where Terra remained for the next 11 days. On June 8, the selling pressure resulted in e a breakdown.

The consequence is a four-hour candlestick close below $3.50, which led to a 46% crash that came close to retesting the -27% retracement level at $1.69. Since then, LUNA price failed to recover above the $3.50 hurdle. 

The recent tag of the $1.69 barrier has pushed LUNA price up by 32% to where it currently trades - $2.07. If this momentum continues, there is a good chance that the LUNA 2.0 altcoin will reach the $3.50 blockade.

In total, this run-up to $3.50 would constitute a 72% ascent and is likely where the upside is capped for LUNA price. However, a four-hour candlestick close above the said barrier will paint an even more bullish picture and open the path to $4.98.

LUNA/USDT 4-hour chart

LUNA/USDT 4-hour chart

While things are looking up for LUNA price, a spike in selling pressure that produces a four-hour candlestick close below $1.69 will create a lower low. This development will invalidate the bullish thesis and allow the bears to take control.

In such a case, LUNA price could crash to the $1 psychlogical level, and in a highly bearish case retest the listing price at $0.5.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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