The price of Terra Luna had a significant increase of 85%, hitting a level of resistance at $0.878. This price level had previously been reached in the month of June.
LUNA, due to its overbought condition, has the potential to see a 10% decline in order to assess the support level of $0.742, unless it successfully surpasses and maintains a closing price above $0.878.
The bearish hypothesis would be rendered invalid in the event that the cryptocurrency surpasses and concludes above the $0.878 mark, hence potentially leading to the attainment of $1.000.
Terra Luna (LUNA) has a bullish inclination in its trading patterns, positioning itself as one of the prominent Layer 1 (L1) tokens that are experiencing significant upward momentum. This trend coincides with the larger market's emergence into what looks to be the initial stages of a bullish market cycle. In the current scenario, several observers claim that those who have entered the market for Bitcoin at a later stage or have refrained from participating altogether may continue to find themselves excluded from the ongoing dominance of this leading form of digital money.
The Terra Luna coin is experiencing significant gains inside the Layer 1 token market.
Terra Luna (LUNA) is now seeing a surge in value, similar to other L1 tokens such as Solana (SOL) and Avalanche (AVAX), which have also seen significant increases of 25% and 15% respectively. The current spike has resulted in LUNA testing levels that mirror those observed in June, exhibiting a significant upward trajectory as the weekend approaches.
The price of Terra Luna has had a significant upward trend, nevertheless, it is plausible that a 10% correction may occur for LUNA.
The price of Terra Luna (LUNA) had a significant surge, increasing by over 90% and reaching an intra-day high of $0.874. However, due to the cryptocurrency being overbought, it then underwent a 5% drop. The occurrence resulted in LUNA surpassing a fair value gap (FVG), which denotes an inherent market imbalance.
From a non-expert perspective, an FVG refers to a geographical region characterized by the presence of pricing inefficiencies. It is observed that the value of an asset often reverts to previous levels and fills the gap through more trading activity. Consequently, a Financial Valuation Model (FVG) functions as a catalyst for influencing the value of the asset. This information provides traders with insights into the potential future trajectory of prices, as they strive to establish equilibrium within the market.
According to momentum indicators, it can be observed that LUNA is exhibiting a significant state of overbought conditions. However, the upward trend of its northern movement indicates the potential for more price appreciation. Traders should consider this as a precautionary measure, refraining from adding to their current holdings but also avoiding premature closure, as there is potential for more gains in the future.
The Terra Luna price may potentially surpass the nearby resistance level of $0.878 due to heightened purchasing pressure, maybe reaching the psychological threshold of $0.900.
In an optimistic scenario, Terra Luna has the potential to reach the significant psychological threshold of $1.000, indicating a strong bullish trend. The proposed action would result in an increase of 20% compared to the existing levels.
The Awesome Oscillator (AO) indicator provides corroborating evidence, indicating that the market is being driven by bullish sentiment. This is evidenced by its placement inside the positive range, accompanied by the green coloration of the histogram bars.
The chart below demonstrates an upward trend in net volume, as seen by a 520% surge in 24-hour trading volume according to CoinMarketCap statistics. The simultaneous increase in both price and trade volume indicates a significant level of buyer interest in the item.
On the contrary, given the overbought condition of LUNA , it is plausible that a corrective movement may occur in the near future, resulting in a decline in the price of Terra Luna. This decline may potentially breach the support level of $0.742. In a really unfavorable scenario, the decline in value might persist for the cryptocurrency, leading to a potential examination of the FVG. A potential confirmation of the continuation of the downtrend may occur if there is a break and subsequent closing below the midline of the order block, which is situated at a price level of $0.642. $LUNA
The potential selling pressure that may arise has the potential to drive down the price of Terra Luna to the support level of $0.561, which represents a decrease of nearly 30% from its current value.