With the volatile overall market, altcoins like Terra are gaining momentum to reclaim higher levels. The LUNA coin price has shown remarkable growth over the past few days to complete the rounding bottom pattern and exceed the 50-day EMA.
The sharp increase in demand for LUNA and the sudden market-wide recovery spike increases the chances of LUNA skyrocketing soon.
Maintaining an overall downtrend since the fiasco, the LUNA coin price broke multiple support levels. Failing to find a strong footing, the lower high formation led to the resistance trendline formation in the daily chart.
However, the recent consolidation at $0.38, followed by an exponential rise, refreshes the market sentiment towards Terra. The uptrend seems to be fueled by the token burning events of Terra.
The exponential rise of 41% this week forms a rounding bottom pattern with a neckline at $0.57. Currently, the LUNA price reverses from the neckline with an intraday fall of 8.39% and trades at $0.5066.
Technical Indicators:
RSI Indicator: The daily RSI line spikes into the overbought zone, reflecting a strong underlying bullish sentiment.
MACD Indicator: The MACD and signal lines sustain the positive trajectory with the rising histograms. This reflects the significant rise in buying pressure.
Will LUNA Price Reach $0.10?
If the buying pressure continues, the LUNA price might surpass $0.57. This would start a new breakout rally to reach $0.95. On the contrary, a downtrend may emerge if buyers fail to dominate the 50-day EMA. This could challenge the bullish dominance at $0.38.
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