In just four trading days, the LUNA price has risen by 40% following a bullish reversal from January low support of around $46. This price jump also provided a bullish breakout from the double bottom pattern, accelerating the ongoing rally. Can buyers sustain this growth?
Key technical points:
- LUNA buyers regain the crucial EMAs(20, 50, 100, and 200)
- The intraday trading volume in the LUNA is $2.4 Billion, indicating a 123.6% hike.
LUNA News: Luna Foundation Group Raises $1 Billion To Safeguard Terra’s Stablecoin(UST)
LFG has raised $1 billion through a private token sale to establish a decentralized $UST Forex Reserve in $BTC. Terra tweeted “Although the widespread adoption of UST as a consistently stable asset through market volatility should already refute this, a decentralized Reserve can provide an additional avenue to maintain the peg in contractionary cycles that reduces the reflexivity of the system,”.
Amid this announcement, the LUNA price soared 9.5% on Feb 22nd and continues its rally despite high volatility in the global market.
Let us study the LUNA/USD technical chart to get more insight into price behavior.
Source- Tradingview
On February 20th, the long tail candle indicated the buyers are highly interested in this dip. The Follow-up green candle soared the LUNA price by 28%, bringing it to $60 resistance. The technical also revealed a double bottom pattern in the daily chart and with the price providing a massive breakout from its neckline($60) on Feb 24th.
This pattern breakout intensified the buying pressure and surged the altcoin to its current level(66.19). However, the price can be expected to retest the breached resistance($62.5-$60) to validate the sufficient demand.
If buyers sustain above this level, the coin could climb another 15% to retest the $76 mark.
Technical Indicator
The up curving 20 and 50-day EMA indicates the buyers are wresting control from sellers. Moreover, the recent price jump has crossed above the crucial EMAs(20, 50, 100, and 2000, providing additional confirmation.
The RSI indicator slope spike into the positive territory, indicating a positive shift in market sentiment.
- Resistance levels: $48.6 and $60
- Support levels: $45.6 and $45
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