The LUNA price action is very constructive and suggests a spike is approaching, but will it hit the expected $ 100 milestone?
Terra (LUNA) has made up most of last week’s loss and is on track for a fourth positive trading day. LUNA is slightly firmer at $ 65.05 (+ 1.3%), up 26% from Monday’s pre-FOMC lows. The upswing has lifted the market capitalization of the stable coin protocols back to over 24 billion US dollars and is just below Avalanche in 11th place among the most valuable cryptocurrencies.
Terra far outperformed the broader cryptocurrency market in the second half of 2021. The LUNA coin has been in a strong upward trend for six months. By December 4th, price had risen a remarkable 2,000% from the May flash crash lows. However, recent market volatility and concerns about central bank tightening resulted in a 40% sell-off from the all-time high. But similar to previous fixes, buyers quickly took advantage of the discount. As a result, LUNA price is back in bull mode. The question is, can Terra sustain the rally in the current climate?
Terra price forecast
The daily chart shows that LUNA price is trending up in a widening wedge pattern, a megaphone. If the coin continues to trade within the parameters of the pattern, a price of $ 100 is possible at some point. However, the pattern tells us that volatility increases as the price increases. A trend support test is also likely on this basis.
Below the market, the 50-DMA has proven to be a significant level of support at $ 52.99. The 100 DMA at 45.71 and the rising trend at $ 41.50 add to the confluent support. In my view, the overall market is intact as long as LUNA stays above trend.
However, the technical outlook worsens if LUNA falls below trend support. Therefore, a daily close below $ 41.50 invalidates the immediate bullish outlook.
LUNA price chart (daily)
For more market insights, follow Elliott on Twitter.
Comments are closed.