LUNA price collects liquidity to support new bullish move

• LUNA price has made a slight recovery after being crushed by nearly 60% in just thirty-five days.
• Bulls must hold support against a critical Ichimoku level to prevent further selling.
• A recovery to the $65 value area is likely.

LUNA price has faced significant whipsaws and swings over the past couple of months. Its performance in 2021 was spectacular and the envy of nearly every cryptocurrency. However, that all changed when it topped out on December 27, 2022, and began a month-long collapse from $103 to $43.

LUNA price stages a relief rally, but its ability to maintain the gains remains under scrutiny

LUNA price has recovered a decent chunk of its losses. The post-Wonderland debacle has, thus far, seen a relief rally of over 40% from the January 31 low. The close above the daily Tenkan-Sen on February 4 was a significant achievement for the bulls as they could extend that rally for another five days.

However, LUNA price buyers, speculators, and investors will face their first technical test of this recent rally. LUNA is currently testing the daily Tenkan-Sen as its primary and only support level on the daily chart. If bulls can keep price above the Tenkan-Sen, then a move to test the Kijun-Sen at $65 is next.

LUNA/USDT Daily Ichimoku Kinko Hyo Chart

Failure to hold the Tenkan-Sen will likely result in even more selling pressure and move to test the 50% Fibonacci retracement at $41. Unfortunately, LUNA price is one of the only major market cap cryptocurrencies not to fulfill a 50% logarithmic Fibonacci retracement, so it is entirely possible that the selling pressure has yet to end.