Why LUNA price will reward patient traders, and how you can be one of them?

LUNA price shows that it is out to repeat the fractal that was spotted nearly two weeks ago. If such a development does occur, investors should be aware that more corrections are on the horizon.

LUNA price needs to exhaust downside liquidity

LUNA price produced a fractal that had two parts to it; the first step consisted of a liquidity run below a previously formed swing low, and the second step was a rally. 

The June 8 swing low at $1.94 was swept as LUNA price dropped below it on June 18 to collect the liquidity. This development was followed by a surge in bullish momentum that pushed the altcoin up by 73% in the next week or so.

This upswing was exhausted after the altcoin created a double top.

The second time this setup was repeated was on July 13, when LUNA price wicked below the June 18 swing low at $1.60. After this liquidity run, the altcoin triggered another run-up that pushed Terra by 50%.

Interestingly, this rally also faced exhaustion after producing a double top at $2.20. 

Since creating a local top, LUNA price has dropped 25% to where it currently trades - $1.64. If the fractal is still in play, Terra is likely to drop at least 12% before sweeping the July 13 swing low at $1.46. This development, according to the fractal, should trigger a bullish move.

In such a case, market participants can expect a 32% move to $1.94.

LUNA/USDT 4-hour chart

While things are looking bearish in the short-term, LUNA price is positioning itself for a bullish move. If the sweep of the July 13 swing low at $1.46 fails to see a quick recovery, it will invalidate the fractal.

In such a case, LUNA price could collapse to the $1 psychological level before attempting another  recovery rally.