Terra (LUNA) threatens to reclaim the key 200-day simple moving average, which will signal a shift in the current trend. LUNA's price has successfully broken above the key 200-day EMA and the prominent psychological figure of $10.00, marking a change in the trend from bearish to bullish.
Price Structure
Starting with the May 23 low, Terra's price continued higher, printing a series of higher highs followed by a series of higher lows. Thus, the entire price movement can be confined within an upward channel. However, the recent break above the upward resistance channel signals more demand.
As per the technical definition, a break above the upward resistance channel signals a trend continuation to the upside.
Additionally, if we study the price structure that emerged from the all-time high of $23.30, LUNA developed an ABC price structure, which by definition is a corrective pattern.
In other words, there is a high probability we can turn higher from here, unless the ABC price pattern is part of a broader corrective pattern.
Moving forward: on the upside, the next level of resistance to keep an eye on is $13.25, followed by $18.80. The current bullish run will remain intact as long as prices stay above the 200-day MA on a closing basis.
Price Structure
Starting with the May 23 low, Terra's price continued higher, printing a series of higher highs followed by a series of higher lows. Thus, the entire price movement can be confined within an upward channel. However, the recent break above the upward resistance channel signals more demand.
As per the technical definition, a break above the upward resistance channel signals a trend continuation to the upside.
Additionally, if we study the price structure that emerged from the all-time high of $23.30, LUNA developed an ABC price structure, which by definition is a corrective pattern.
In other words, there is a high probability we can turn higher from here, unless the ABC price pattern is part of a broader corrective pattern.
Moving forward: on the upside, the next level of resistance to keep an eye on is $13.25, followed by $18.80. The current bullish run will remain intact as long as prices stay above the 200-day MA on a closing basis.