-LUNA price is trading at $2.08 and is on the verge of confirming another breakout that could quickly propel it to $5.00.
-The asset needs to hold support above $2.00 for buyers to have more time for accumulation.
-Buyers are in control but the uptrend may be nearing its elastic limit ahead of a pullback.
LUNA price is trading at $2.08 and is on the verge of confirming another breakout that could quickly propel it to $5.00. This is a potential new support level, as traders must be wary of possible profiteering ahead of the next bullish move. To ensure this, Terra must hold support above $2.00, to give buyers more time for accumulation ahead of the anticipated breakout.
At the moment, Terra is facing declining volumes, which according to CoinMarketCap, has dipped -49% to $152 million in 24 hours. Low volume is a concern as it denies the asset the momentum to push to higher levels. In order to assess the bullish outlook in LUNA price, the 100-day Exponential Moving Average (EMA) is reinforcing the seller congestion in the area in confluence with the twice-tested falling trend channel’s upper boundary.
To confirm to investors that the path with the least resistance is to the upside, Terra needs to close the day above this level. The position of the Stochastic oscillator in the overbought region shows that buyers hold the reins. However, it could also mean that the uptrend is nearing its elastic limit ahead of a pullback, accentuated by profit booking.
Therefore, traders should approach LUNA price cautiously and with an open mind and realize that failure to break above the hurdle at $2.30 could quickly lead to a retracement. On the other hand, a successful break above this level could trigger a buying spree that could propel Terra to higher levels. Nevertheless, investors must understand that the crypto market is volatile and they should use reputable sources to keep up with the latest news and developments in the industry.