Terra (LUNA) hits the highest of the watchlist as soon as once more because the pair consolidates after a large bull run. Are we in for a dip forward or is an upside break across the nook?
Symmetrical Triangle on Terra (LUNA)
Lower than two weeks in the past, Terra (LUNA) was calmly trading in a range between $40 – $45 before breaking higher towards the previous all-time high around $55. We identified that given the sturdy basic narrative (huge UST minting and LUNA burning), a retest wouldn’t probably attract sufficient sellers to reverse a bullish run and maintain the $55 deal with for lengthy.
Properly, that bullish run got here and $55 was minimize down like a sizzling knife by way of butter as LUNA/USD made it’s means larger. LUNA did undergo with the remainder of the crypto asset area throughout final week’s broad sell-off, however amazingly, LUNA turned that into a fast shopping for alternative when the market retest that $55 earlier excessive space. Not solely did LUNA get to the then $70, however broke that rapidly to just about hit $80 only a day after the broad crypto crash.
Since then, market volatility has dipped and worth motion appears to be drawn to the $70 deal with, forming a symmetrical triangle within the course of. This sample is often seen as each a purchase or promote sign, relying on which facet the market breaks.
Provided that the fundamentals are nonetheless sturdy and as Omicron variant fears fade, an upside break would probably attract technical patrons as soon as once more. With a every day common true vary of round $eight at the moment, that might result in new all-time highs, probably a take a look at of the $90 in a brief time period.
But when Omicron fears develop and/or inflation/fee hike fears come again into the combination, a dip in danger property like LUNA is a possible short-term consequence. A break under the rising ‘lows’ might attract short-term sellers/revenue takers, however that transfer could also be restricted to the $55 deal with as soon as once more if the elemental story of LUNA holds sturdy.
What do you all assume? Is LUNA set to choose up in volatility and break the triangle? Or will we see this triangle flip into extra of a consolidation vary forward. Let me know within the feedback part under!