LUNA 2.0 price is experiencing a tough time as the asset is testing the last line of defence at around $3.3 at the moment. As the Bitcoin price tanked down within a short time after surging by more than 7% in the early trading hours, This impacted the LUNA price deeply, but still, the possibility of a strong bounce-back cannot be eliminated.
With the launch of a new chain Terra 2.0, the asset was expected to kickstart a mega rally aiming to recover the previous losses. However, the prices experienced tremendous bearish pressure in the past couple of hours, compelling the asset to break down from the descending triangle. As Coinpeida reported earlier, the price tanked down below $3.8 to hit $3.3 and preparing a bullish setup.
- The LUNA price for quite a long time been swinging within a descending parallel channel displaying the possibility of carrying on with a bearish trend
- The recent price plunge was also an impact of the squeeze that occurred in the Bollinger Bands that compelled the price to undertake a significant leg towards the south, bowing down to the selling pressure
- On the other hand, the RSI has plunged heavily to the oversold area and hence after a brief consolidation the price is pre-programmed for a 20% upswing as it did previously
- Considering the present price action, the LUNC price may be due for a significant upswing to regain the lost levels above $4 initially
- As these levels collide with the upper band of the parallel channel, it is mandatory to surpass and achieve $4.5 to keep up the bullish streek
Collectively, the launch of the Terra 2.0 chain appears not to be in favour of the market as the prices kept on sliding down from the beginning. On the other hand, after the recent LUNC-USTC episode, it would be a tedious job to regain the trust of the investors. And hence the LUNA price could take up some more time to recover and set up a strong bullish trend.
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