- LUNA price shows tight wounding around the $2 psychological level, signaling a volatile move.
- A retest of $1.94 before an explosive move to equal highs at $2.80 could occur.
- A four-hour candlestick close below the $1.94 support level without a quick recovery will invalidate the bullish thesis.
LUNA price has been consolidating tightly since June 30, after undoing the gains seen over the previous week. This small range, suggests that an explosive move is around the corner, although the direction of a breakout remains to be seen.
LUNA price prepares for volatility
LUNA price rallied 46% on June 26 and June 27, setting up a swing high at $2.80. This rally immediately witnessed a 26% pullback and was quickly followed by a 36% run-up to set up another swing high at $2.80, creating an equal high.
Resting above $2.80 is a bunch of buy-stop liquidity from traders that shorted this move. Hence, it would make sense from a market maker perspective to push LUNA price higher to collect this liquidity. However, the recent consolidation makes it so that the breakout could go either way.
Considering that Bitcoin price shows a slight affinity towards a temporary bullish move, investors can expect LUNA price to do the same. A quick 32% rally that sweeps the $2.80 level will fulfill the upside objective and potentially limit the upswing here.
However, from a long-term perspective, there are three equal highs that were formed at $3.51 and in some cases, this run-up might extend to this level to collect liquidity. In total, this move would constitute a 67% ascent.
LUNA/USDT 1-day chart
While things are looking up for LUNA price, a four-hour candlestick close below the $1.94 support level will indicate that the bulls are weak. If the altcoin fails to recover quickly above this support, it will further confirm that the sellers are in control and invalidate the bullish thesis detailed above.
In such a case, LUNA price might crash 16% to revisit the June 18 swing low at $1.60.
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
Whale grabs 16,000 ETH as Ethereum Foundation vows support for L1, RWA and stablecoins
Ethereum Foundation's Co-Executive Director Tomasz K. Stańczak highlights simplified roadmap scaling blobs and improving L1 performance. Ethereum whale scoops 16,000 ETH, emphasizing growing interest in the token as the price recovers.
Bitcoin retests key resistance at $85K, breakout to $90K or rejection to $78K?
Bitcoin (BTC) price edges higher and approaches its key resistance at $85,000 on Monday, with a breakout indicating a bullish trend ahead. Metaplanet announced Monday that it purchased an additional 319 BTC, bringing its total holdings to 4,525 BTC.
XRP price teases breakout, bulls defend $2 support
Ripple (XRP) price grinds higher and trades at $2.15 during the early European session on Monday. The token sustained a bullish outlook throughout the weekend supported by bullish sentiment from the 90-day tariff suspension in the United States.
Senator Elizabeth Warren launches fresh offensive on crypto
Senators Elizabeth Warren, Mazie K. Hirono, and Dick Durbin want the DoJ’s decision to terminate crypto investigations reversed. The Senators raise concerns over the DoJ’s shift in priorities, terming it a “grave mistake.”
Bitcoin Weekly Forecast: Market uncertainty lingers, Trump’s 90-day tariff pause sparks modest recovery
Bitcoin (BTC) price extends recovery to around $82,500 on Friday after dumping to a new year-to-date low of $74,508 to start the week. Market uncertainty remains high, leading to a massive shakeout, with total liquidations hitting $2.18 billion across crypto markets.
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.