- 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.
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