What would happen if Terra's LUNA price dips below $2
- Terra's LUNA price coils in a triangular fashion.
- LUNA price congestion could resolve with a 50% price decline.
- Invalidation of the bearish thesis is a breach above $2.78
Terra's LUNA price shows concerning signals, with bears targeting $1.00. Still, being an early seller is ill-advised.
Terra's LUNA price targets $1.00
Terra's LUNA price sideways action is finally starting to make sense. Since the cataclysmic sell-off, the range-bound consolidation has produced both diminishing returns and losses between each directional shift. On July 6, 2022, the technicals display a coiling triangle pattern which justifies the lackluster price action investors of the LUNA price have been experiencing.
LUNA price currently trades at $2.17. The Relative Strength Index confounds the idea of a triangle in place as bearish and bullish divergences are witnessed on the indicator around pivotal levels. The Volume Profile suggests being an early bear could be problematic as there is a thin bearish influence around the current $2.20 resistance level.
LUNA2/USD 4-Hour Chart
A justified bearish entry will be to wait for a definitive candle close below the $2.02. Traders can join the bears if the breach occurs while keeping an invalidation level at $2.78. The triangle's strength could send LUNA price into a decline targeting $1.00.
Invalidation of the bearish thesis is a definitive candle close above $2.78. If this bullish event occurs, a 50-60% rally could occur in favor of the bulls targeting $4.10.
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.
