- LUNA Price forms a head-shoulders setup that suggests a potential 36% fall.
- The $62 weekly support rebound paused the crash to $47.28.
- A 6-hour candle closing beyond $75.53 will cancel Terra’s bearish thesis.
LUNA price action presents vague signals as the alt nears the weekly support barrier. A downward breach of this level might catalyze colossal price drops for the alternative coin. Nevertheless, minor uptick chances exist.
LUNA Price Might Crash Massively
LUNA saw its price movements from 22 February, forming the head-shoulder pattern. This technical setup comprises three unique swing peaks. The center one is the tallest, comprehended as the ‘head.’ The two highs on each side have comparable heights, the ‘shoulders.’
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Connecting the head and shoulders valleys print a horizontal support zone at $75.53, the ‘neckline.’ The technical pattern predicts a 36% drop, determined by gauging the distance from the head’s highest limit to the neckline. Adding the result to the $62 breakout point reveals $47.28 as the target.
So far, the alt dropped 18% from the neckline, currently rebounding from the weekly support floor around $62. This level remains crucial for Terra’s next move. Buyers maintaining the struggle seen within the previous three days, a breakdown will likely emerge. In such situations, LUNA’s price might plummet to $48.28. It can also stretch lower to hit the weekly support barrier at $43.56.
Though this appears grim for Terra’s alt, a 6hr candle closing beyond $75.53 will annul the bearish thesis by the head and shoulders. LUNA would try to print a higher peak above the resistance zone at $87.84 before triggering further upticks.
For now, odds appear to favor bears for LUNA. The alt forms a head-shoulder pattern, hinting at a 36% price fall. Though the $62 support rebound paused the nosedive, plunging narrative exists.
Also, the current broad market outlook supports declines in LUNA. The global cryptocurrency market cap reflects the downbeat mood in the financial space. While publishing this news, the overall value of all digital tokens stood at $1.58 trillion. That comes after a 3.85% drop within the past day.
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