LUNA: Why $150 should not come as a surprise to traders

LUNA’s worth exhibits an attention-grabbing setup after the latest Bitcoin-induced pullback on 31 March. The value motion developed over the course of final month suggests {that a} large run-up is across the nook.

An explosive rally awaits LUNA 

LUNA’s worth has arrange three larger highs and three larger lows since 28 February. Connecting these swing factors utilizing two development traces reveals a rising wedge. This technical formation is a bearish setup, it forecasts a 20% downswing to $78.91. And, it’s decided by including the space between the primary swing excessive and swing low to the breakout level.

Whereas this outlook is believable, one thing fully reverse may happen. Buyers ought to anticipate LUNA’s worth to interrupt the higher development line and proceed transferring north. Though the sample ought to get away decrease from a theoretical standpoint. Nonetheless, in an excessively bullish market, rising wedges can breach the upside.

Utilizing the Fibonacci extension software, market individuals can forecast chances of a brand new all-time excessive. On 29 March, Terra bulls pushed by means of the earlier excessive and set a model new excessive at $110.

Due to this fact, an uptick in shopping for stress that breaches the rising wedge to the upside is more likely to shatter the present ATH at $110 and make its technique to a brand new one. Primarily based on the Fibonacci extension software, the 161.8% extension at $149 or roughly $150 might be the place the LUNA worth varieties a neighborhood prime.

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Supply: TradingView, LUNA/USDT 1-day chart

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Whereas the technical outlook can generally be unnecessarily skewed to favor one camp, the on-chain metrics assist stability out such biases. Nicely, the on-chain quantity for Terra has shot up from 2.41 billion to 4.19 in lower than 4 days.

The practically 50% hike in on-chain exercise means that buyers are desirous about LUNA on the present worth ranges. This paints a bullish outlook for LUNA’s worth, additional including credence to the views expressed from a technical standpoint.

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Supply: Santiment

No matter a bullish outlook, In some circumstances, the value of LUNA might retrace to the every day demand zone, extending from $71.18 to $78.91 earlier than surging larger. This transfer, whereas short-term bearish, might enable sidelined consumers to get a reduction for his or her buy and in addition gives a a lot larger return.

Nonetheless, a every day candlestick shut under $71.18 will invalidate the bullish thesis for LUNA and set off an additional descent to secure help ranges.

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