- LUNA price retraces after rallying 42% over the last 24 hours.
- The ongoing retracement hints at a 60% upswing to $3.50.
- A four-hour candlestick close below $1.87 will invalidate the bullish thesis.
LUNA price breached the range it was trading in and crashed violently in June. However, buyers seem to be making a comeback, suggesting that a recovery rally is in effect.
LUNA price prepares for take-off
LUNA price rose 42% on June 27 and set a swing high at $2.79. While this upswing was impressive, the altcoin faced exhaustion combined with a sudden spike in selling pressure. As a result, there was a 23% retracement.
This pullback is a blessing in disguise for the next leg-up that is likely to push LUNA price to the next significant hurdle at $3.50. Therefore, investors need to pay close attention to the price action as it is primed for the next leg-up.
Patient investors can capitalize on the anticipated 60% in gains where the upside is likely to be capped for LUNA 2.0. However, if buyers step in and flip this hurdle at $3.50 into a support floor, it could result in the rally’s extension.
In such a case, LUNA price could further rally 43% to the $4.98 hurdle or the $5 psychological level. This run-up, in total, would amount to a 131% ascent and is likely where the upside is limited for the altcoin.
LUNA/USDT 4-hour chart
On the other hand, if LUNA price faces an intense sell-off from the current position, the uptrend is unlikely to trigger. In such a case, if LUNA 2.0 produces a four-hour candlestick close below $1.87, it will create a lower low and invalidate the bullish thesis.
This crash could cause LUNA price to dive to the next support floor at $1.69.
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.
Recommended Content
Editors’ Picks
TRON DAO powers $1.2B in USDT exchange inflows, igniting stablecoin activity and on-chain volume
TRON DAO facilitates $1.2 billion in USDT exchange inflows over the past seven days as on-chain volume hits $72 billion. An increase in USDT exchange inflows suggests that traders are either preparing to buy the dip or could be covering long positions.
Bitcoin could fall toward the $73,000 mark as tariffs hit the global market
Bitcoin price stabilizes around $76,000 at the time of writing on Wednesday after falling 3.59% the previous day. BTC could face volatility as US President Donald Trump announced tariffs go live on Wednesday, with China’s retaliatory duties on Thursday.
Top 3 gainers NEO, Plume and Story: NEO surges despite Trump's tariff firestorm as investors succumb to extreme fear
Cryptocurrencies are enduring progressive market carnage from the US President Donald Trump administration's incessant tariffs on its trade partners, with some selected altcoins like NEO, Plume and Story (IP) leading the bullish brigade on Wednesday.
Cardano Price Forecast: Bears aiming for a yearly low of $0.50 as on-chain data show increasing dormant wallet activity
Cardano (ADA) price hovers around $0.56 on Wednesday after falling 13% the previous week. Token Terminal data shows that ADA’s fee collection has constantly fallen in 2025, indicating lower blockchain usage and activity.
Bitcoin Weekly Forecast: Tariff ‘Liberation Day’ sparks liquidation in crypto market
Bitcoin (BTC) price remains under selling pressure and trades near $84,000 when writing on Friday after a rejection from a key resistance level earlier this week.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.