This week, CoinMarketCap breaks down the possible price movement of Terra (LUNA) with some key levels to keep an eye on! Read more to find the important entry points.
LUNA has been one of the most popular altcoins in the market for the past month, returning investors more than 60% of profit this month. In the past few weeks, Bitcoin (BTC) has been consolidating in a range. This has, therefore, given strong alts the power they need to run. LUNA is already fundamentally bullish and if its prices close at $100, it will likely see new highs. Let’s hop into the charts and see what they look like.
LUNAUSDT in a 1-Day Chart
Around $87, there is a clear buying pressure. This can be seen due to the fact that there is a bullish order block. The price tested slightly under this order block (or demand zone), with buyers instantly longing. This can be seen by the long wicks. As long as LUNA holds the $51.5 level without closing below, the market is clearly still bullish, therefore, longing any dip would be the best play to make. Areas of adding interest would be either around $78, or if you are particularly cautious about the market, the $65 level is good due to the clear demand zone. If the price was to break down and form a bearish market structure, then $40 would be an ideal entry for a bounce.
LUNAUSDT in a 1-Week Chart
As can be seen on the chart, $100 is the next big resistance to take as the price hasn’t been able to close above it yet. If this weekly candle takes it out, the price can enter price discovery again. However, caution is advised if price fails to claim $100 in its third attempt. The next viable support level is $80 to potentially load up. If you are patient, you may in fact be able to catch the $70 level. This would be a great level to long if BTC sweeps the lows. This is why, you must exercise caution as the price could retrace as much as 25% and still be bullish.
LUNABTC in a 1-Day Chart
LUNABTC looks as if it is about to push to new all-time highs. The price is in a strong uptrend still forming a higher high (0.0020) and lower high (0.0018) here. To maintain the bullish structure, we do not want to see a close below 0.0018, otherwise it is likely that BTC will outperform. There is a bullish order block at 0.0018, which is acting as a demand zone.
Caution should be taken because of the massive negative RSI divergence on the daily. This shows a decline in the relative strength of buyers. If this negative divergence was to play out, and the price broke down below 0.0018, then a good area for a bounce would be 0.0016. Due to the fact that LUNA has broken out so aggressively, it has a small price history. Therefore, a fall from 0.0018 to 0.0016 would be fast.
LUNAETH in a 1-Day Chart
The LUNAETH chart looks very similar to the LUNABTC chart, where the price is in a clear uptrend and sitting pretty much on top of a demand zone. It seems pretty clear that it will push to new all-time highs above 0.025. However, as I mentioned above, there is a little to no market history between 0.022 and 0.018, because of how parabolic LUNA has been. If the price breaks down from 0.022, it is likely that it will end up underperforming in comparison to ETH, losing 14% of its relative value.
SOLUNAVAX
There has been a clear rotation of money between Solana (SOL), Terra (LUNA), and Avalanche (AVAX). We, therefore, need to look where the money is rotating. Before the BTC dump, money seemed to be rotating into SOL, however, after the dump, SOL looks relatively weak. Lets look at the charts and see which coin is the strongest!
LUNA/SOL in a 1-Day Chart
LUNA is currently breaking out of a 250-day consolidation range in comparison to SOL. There is room for at least an 18% move here as the price can move up to 0.629. It has very a small price history above 0.629. If LUNA bulls can break over this resistance, it is likely to outperform SOL for the foreseeable future, with its previous all-time highs being relatively good targets. Volume does seem to be slowing down; there is a chance that money could be flowing out of the pair in the search of a new rotation.
LUNA/AVAX in a 1-Day Chart
If LUNA can break through 0.875 resistance, then 1.15 (at least) is on the table. Moreover, if the price moves through the trendline, it is likely to ignite a whole new wave of buyers. If these buyers can break through the 0.875 resistance, it should move through relatively faster as there are no visible resistance levels between 1.15-1.2. It has been on a clear uptrend for more than a month now, so any pullback or consolidation should not be seen as a weakness but as an opportunity to buy.
It can be concluded that money seems to have rotated into LUNA here as it looks strong against both AVAX and SOL. It is likely to continue as SOL and AVAX are weak compared to LUNA. This will ignite another wave of buyers potentially sending prices up into the discovery mode.
Summary
- Since the start of December, LUNA has been the fastest growing alt in the market. This means that it has gained a considerable number of new investors as they look to rotate to the strongest altcoin whilst bitcoin consolidates.
- BTC has been consolidating for a while at the lows, allowing for strong alts, such as LUNA, to run faster to the top. Until BTC breaks the 44K-52K range, it is possible that many altcoins will continue their run.
- To expect continuation, the price needs to close above $100. If it happens, then it is likely that LUNA will continue to outperform the whole market.
- LUNA is in an uptrend relative to BTC, ETH, SOL and AVAX on 1-day charts. Therefore, it is easy to infer that it will likely outperform all of them for the foreseeable future.
- Looking at the rotation on SOLUNAVAX is essential when longing one of these coins. The hot ball of money seems to have rotated straight back into LUNA, with the LUNA/SOL and LUNA/AVAX chart looking incredibly bullish.
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