What’s next for LUNA price after a 50% rally?
- LUNA price fractal has resulted in a 53% rally to $2.20 over the last five days or so.
- Investors can expect a minor retracement followed by attempts to start a new leg-up.
- A four-hour candlestick close below $1.58 will invalidate the bullish outlook.
LUNA price has run its course after a fractal formation. The upswing that emerged caused the altcoin to revisit July 10 highs. Investors can expect a small pullback before a new rally emerges.
LUNA price to re-establish its directional bias
LUNA price fractal described in the previous article has completed as predicted, pushing the altcoin up by 53%. This run-up has tagged the declining trend line for the fifth time and shows that it is time to retrace.
The incoming correction is likely going to stabilize around $1.82, which is roughly the midpoint of the 53% move. A re-entry of buyers at this level could trigger another leg, which could potentially break out of the declining resistance barrier.
In such a case, market participants can expect LUNA price to revisit the $2.64 hurdle, which would be a 43% ascent. However, patient investors can expect the altcoin to extend to $3.50, which would constitute a 90% gain from the $1.82 support floor.
LUNA/USDT 1-day chart
While things are looking up for LUNA price, investors need to note the possibility of a correction that pushes it back to the starting point at $1.58.
If LUNA price produces a four-hour candlestick close below $1.58, it will indicate that the buyers are weak and also invalidate the bullish outlook. This development could see the altcoin revisit the $1.50 level for further assistance from buyers.
Author
Akash Girimath
FXStreet
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.
