Will $LUNA Reach $3?
The recent surge in the price of Terra Luna (LUNA) suggests that it may be heading towards $3. The coin has experienced three consecutive days of growth with increasing trading volume, indicating sustainable momentum. Additionally, completing the falling wedge pattern sets LUNA up for further gains.
The intraday trading volume for LUNA is currently at $688 million, representing a 355% gain. This significant increase in volume further supports the potential for a price surge.
Source: Tradingview
Over the past year, LUNA has been in a downtrend, following a falling wedge pattern with resistance and support trendlines. However, there are indications that this bearish momentum may be decreasing. The recent breach of the upper boundary of the pattern resulted in a 10% gain for LUNA.
This increase is likely influenced by the growth of USDT stablecoin after Terra Classic Lab acquired $25.6 million USTC as part of its treasury strategy.
Currently, LUNA is trading at $0.83. If buyers can maintain levels above the breached resistance, there is potential for further recovery towards $2.54 and eventually $3.
Is this Recovery Sustainable?
An examination of the daily timeframe chart reveals a long-wick rejection connected to the breakout candle, suggesting that sustaining higher levels may be challenging for buyers. If the news-driven rally fails to maintain this breakout, it could result in a bull trap and intensify selling pressure, potentially causing the price to drop back to $0.55.
- Average Directional Index (ADX): The ADX slope currently stands at 39%, indicating a potential exhaustion point that might support a minor pullback.
- Super Trend indicator: The green film on the daily chart of this trend-defining indicator signifies a positive sentiment prevailing in the market.
Hot Take: The Potential for LUNA’s Surge
The recent surge in Terra Luna’s price, along with increasing trading volume, suggests that the coin may be on track to reach $3. Completing the falling wedge pattern and the acquisition of USTC by Terra Classic Lab are key factors contributing to this potential surge. However, sustaining higher levels and overcoming resistance will be crucial for the sustainability of this recovery. Traders and investors should closely monitor price movements and market indicators to assess the future trajectory of LUNA.
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