LUNA Price Analysis: Can Bulls Break Out of the Descending Channel?

LUNA Price Analysis: Can Bulls Break Out of the Descending Channel?

Terra LUNA bulls are making a comeback, but can the price break out of the descending channel and reach conservative targets like $1.25 and $2, as investors return from the sidelines following strategic partnerships and ecosystem developments?

Terra (LUNA) bulls have made it over $0.85 after the crypto token briefly dropped to $0.8240. With Terra (LUNA) price climbing by almost 3 percent in the previous day from support, investors would be looking forward to a rewarding weekend.

In the meantime, Terra (LUNA) price is doddering at $0.8630 on Friday supported by $23 Million in trading volume.

Investors are likely to be returning from the sidelines following the past few strategic partnerships and increasing developments within the ecological system, touching on governance, integrations, and listings.

That stated, this analysis hinges upon the assessment of Terra (LUNA) price profitability in the coming few days in addition to a longstanding outlook for one of the most critiqued coins in the industry.

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As Downside Pressure Fades, Can Terra (LUNA) Price Blast Out of Descending Channel

Terra (LUNA) price has been sliding within the confines of a descending channel since February after it climbed to reach a new yearly high at $2.52, as illustrated in the daily chart.

This pattern typically forms when the price of an investment is trending downwards, with a series of lower highs and lower bottom Line. 2 parallel trendlines are then drawn to encase the price during a “channel”.

Traders typically interpret this pattern as a to continue signal that the downtrend is very likely persist. This is because the parallel trendlines suggest that the selling pressure is still strong and that any minor upward price movements are likely to be met with resistance at the upper trendline as embodied by Terra (LUNA) price since early February.

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The lower trendline, on the other hand, acts as a key level of support that indicates a possible reversal if it stays intact – not breached.

Even in its rudimentary form, the descending parallel channel is one of the easiest technical patterns to trade as it marks resistance and support levels, allowing traders to set entry and exit points more confidently.

That stated, a glance at the Moving Average Intersection Divergence (MACD) indicator confirms that a tendency reversal may be brewing with Terra (LUNA) price expected to cause a strong rebound.

Still, it would be prudent for traders to wait until the MACD line in blue flips over the signal line in red before activating their buy orders.

To put it another way, we need give the bounce from the channel support time to prove its viability before jumping in, thus avoiding sudden bull traps.

Simultaneously, traders can expect another signal from the Relative Strength Index (RSI) as it recovers from the oversold region. The RSI would likewise turn  over the moving average to add credence to the growing positive  tendency outlook.

Several of the key conservative targets to look forward to including the preliminary go up over $1 followed by recovery from the descending channel. As Terra (LUNA) price recovers, liquidity would increase and bolster upside momentum for profits beyond resistance at $1.25 and $2, respectively.

On the downside, we need caution investors that regardless of the 3 percent recovery, the general market structure is still not strong enough. This implies Terra (LUNA) may continue to trade within the channel with the danger of losses increasing if the channel support weakens.

Terra (LUNA) Doubles Down on Partnerships and Network Development

Zion Schum, the Head of Communications at Terra (LUNA) Money, in the latest update about the ecological system talked about governance, integrations and listings, media features, and other key highlights.

Schum stated that Terra (LUNA) is in a unique position compared to its peers as the ecological system must constantly battle FUD from external industry figures.

“It’s not easy to ship cool shit when the entire world tries to FUD you to death, but that’s precisely what the Terra (LUNA) community did in April,” Schum stated. “From the unveiling of Terra’s cutting-edge new Alliance module to the introduction of Enterprise’s user-friendly, no-code DAO management platform, there is a lot to unpack in this month’s update.”

Within the long update, there was news about the Terra (LUNA) Foundation rolling out Alliance. This is a platform dedicated to serving the decentralized sector and its related economies. Intriguingly, Alliance is open-source and supports Cosmos blockchains teck for economic activities like yield farming.

Alliance brings plenty of advantages to the ecological system such as attracting users, developers, and liquidity, incentivizing native app  development, expanding liquidity for essential crypto token pairs, and diversifying or enhancing staking yield.

Can Terra (LUNA) Price Soar to $100?

Seeing as the present market structure, a breakout to $100 is an incredibly ambitious target for LUNA, especially in 2023.

Nonetheless, with the development team continuing to build through the cryptocurrency winter and promoting Terra (LUNA) as a robust ecological system that is supporting the decentralized finance (DeFi) sector, Terra (LUNA) will naturally gain value to hit $100 in several  years.

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Investors watching the cryptocurrency market structure are aware that recovery may remain suppressed as institutional investors take time to decide if this is the right time to deep their feet into the digital investment space.

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