LUNA 2.0 price coils up as directional bias disappears

LUNA price shows consolidation below a range’s lower limit at $3.50.
A breakdown of the $1.89 support level could lead to a further descent.
However, a quick recovery above $3.50 will invalidate the bearish thesis.

LUNA price shows that there is more or less an agreement between the bulls and the bears that has led to a tight consolidation. This coiling up is occurring while Bitcoin and the rest of the market are crashing non-stop.

LUNA price could crash more

LUNA price breached the lower limit of the range, extending from $3.50 to $10.24 on June 8. This downswing caused a serious sell-off that pushed the altcoin to form a swing low at $1.87.

Since then, there has been a small recovery but LUNA price continues to coil up below the aforementioned range. As bears take control and push the price lower, there is but one support level at $1.87, a breakdown of this barrier will lead to the printing of fresh lows.

Therefore, investors need to be careful with investing in LUNA, especially since the market structure looks bleak. As Bitcoin price continues to tumble with no stop in sight, altcoins are also taking a massive hit.

Therefore, a breakdown of the $1.87 support floor could lead to the LUNA price crashing to the -0.27 retracement level at $1.69. From the current position, this move would constitute a 27% crash.

LUNA/USDT 4-hour chart

On the other hand, if LUNA price produces a four-hour candlestick close above $3.50, it will indicate a resurgence of buyers. This move will also suggest the start of a recovery rally. In such a case, investors can expect LUNA price to make a run for the $4.98 resistance barrier.

Share: Cryptos feed

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.