Terra’s LUNA price back on the drawing board after snapping out of a 13% bullish breakout

LUNA price seeks support at a confluence level created by the 50-day EMA and the 100-day EMA.
Terra’s LUNA price is in grave danger of dropping to retest $2.30.
Bulls could resume the 13% double-bottom breakout to $2.88 if LUNA reclaims the neckline support at $2.55.

Terra’s LUNA price risks stretching its leg to $2.30 if support at $2.46 cracks. Before this retracement, LUNA had broken above a double-bottom pattern with a 13% breakout target of $2.88.

LUNA price back to trimming gains

Terra’s LUNA snapped out of its bullish move that could have tagged $2.88 just several days after releasing the community update for October. The key milestones the report focused on encompass protocol and feature launches as well as bounty releases – some of which were covered by FXStreet’s crypto team during the month.

LUNA price nurtured its bullish outlook after rebounding from a key demand area between $2.2 and $2.30. A double-bottom pattern was later confirmed, with the price cracking its way through the neckline (dotted line) resistance.

However, investors backing LUNA’s 13% move to $2.88 saw their hope vanish as resistance highlighted by the 200-day Exponential Moving Average (EMA) came into play at $2.62.

LUNAUSDT four-hour chart

Now LUNA price teeters at $2.48 in the wake of declines from the 200-day EMA and below the pattern’s neckline. The Directional Movement Index (DMI) could send a negative signal to validate Terra’s bearish outlook in the price of LUNA anytime.

Traders who may wish to short LUNA must way for the -DI to cross above the +DI before firing up their positions.

The confluence support at $2.46 formed by the 50-day EMA (in red) and the 100-day EMA (blue) could invalidate the expected move to $2.30. A four-hour to a daily candlestick close above this level will encourage buyers to retain their support ahead of another bullish attempt to $2.88.

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.

Join Telegram