Terra's LUNA reclaims important hurdle before printing 15% gains
|- Terra price opens and touches base above a key technical level.
- As LUNA price gets underpinned, a new area opens up for gains towards $0.000137.
- Expect to see a slow grind higher as price action lags a bit against other major cryptocurrencies.
Terra's (LUNA) price is on a slow grind higher, reclaiming a key hurdle to provide enough incentive for investors to stay in the trade. As a key Fibonacci level gets tested for support, another 15% of upside gains are in the making as LUNA price could pop back towards $0.000137, a level not seen since mid-June. In doing so, a part of the implosion will get paired back, and Terra will reclaim some of its credibility.
LUNA price could regain some credibility
Terra price has had issues reclaiming the Fibonacci level at $0.000118 with price action hovering above and below these past few days. Buyers came in near the 78.6% Fibonacci level at $0.000112 and started buying into the price action, pushing price action back above the $0.000118 Fibonacci level. A strong bullish signal has been delivered this morning with an opening above and even a small test to the downside that is getting picked up quite quickly, which points to an overweight bulls scenario.
LUNA price will still need to break the high of July 30th at $0.000123 before investors can start thinking about hitting $0.000137. With the mild tailwinds and global markets on the front foot , momentum could provide substantial support for the rally. However, seeing the performance of some major counterparts, LUNA price action looks to be lagging and not enjoying the full strength of the summer rally, which means a slow grind higher and rather limited upside potential in the medium term.
LUNA/USD Daily chart
Risk to the downside comes with support from the Fibonacci level at $0.000118 failing and a pullback in search of support found at the green ascending trend line. The flat level at $0.000115 has been chopped up too much already to hold any relevance and support. So investors will need to take a 5% to 6% negative return if they want to stay in before reaching support.
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