How to prepare for LUNA price and its explosive move to $2.80
|- LUNA price is retracing after creating a liquidity pool resting above $2.21.
- A bounce off the support level at $1.80 or $1.60 could trigger an explosive move to $2.80.
- A daily candlestick close below the August 29 swing low at $1.50 without a quick recovery above $1.60 will invalidate the bullish thesis for Terra.
LUNA price action has been clockwork and shows no signs of breaking this trend. The recent upswing created a blow-off top and an accumulation of buy-stops, aka liquidity above a crucial level. Therefore, investors can expect the ongoing retracement to result in a sudden burst in buying pressure, leading to an explosive move.
LUNA price prepares for an uptrend
LUNA price rallied 47% between August 29 and September 1; this move came after collecting the sell-stop liquidity resting below the August 19 swing low at $1.92. This liquidity sweep was a buy signal for sidelined traders.
The aforementioned rally set a swing high at $2.21, making it one of the multiple swing highs at this level, indicating a collection of short-stops, aka buy-stops. The next objective for market makers is to collect the liquidity resting here.
Hence, investors must wait for one of two things to happen to enter a long position.
- A bounce off the $1.80 or $1.60 support levels.
- Or a sweep of the $1.50 swing low, followed by a quick recovery above $1.60.
Regardless of which outlook occurs, the target for LUNA price is $2.21 and the buy-stop liquidity present above it. However, if the momentum is strong enough, Terra bulls could push the altcoin to reach the $2.80 level.
This move would represent a 74% gain from $1.60 and is likely where the upside is capped for Terra.
LUNA/BUSD 1-day chart
On the other hand, if LUNA price dips below $1.50 but fails to recover above $1.60 in a swift manner, it will signal a weakness among buyers and invalidate the bullish narrative. This development could see LUNA price revisit the $1.45 and $1.40 support levels.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.