LUNA 2.0 price is experiencing a tough time as the asset is currently testing its last line of defense around $3.3. As the price of bitcoin fell within a short period of time after rising more than 7% in early trading hours, this deeply affected the price of LUNA, but even so, the possibility of a strong bounce-back cannot be ruled out. Is.
With the launch of a new series of Terra 2.0, the asset was expected to kickstart a mega rally, aiming to recover past losses. However, the price experienced tremendous bearish pressure over the past few hours, forcing the asset to break out of a descending triangle. As previously reported by CoinPeda, the price declined below $3.8 to $3.3 and formed a bullish setup.
- LUNA price has been swinging within a descending parallel channel for quite some time which shows a possibility of further continuation with a bearish trend.
- The recent price drop was also an effect of a squeeze in the Bollinger Bands which forced the price to take a significant move south, succumbing to selling pressure
- On the other hand, the RSI has registered a sharp decline in the oversold area and hence the price is pre-programmed for a 20% increase as before after a brief consolidation
- Considering the current price action, LUNC price could lead a significant rise to reclaim the lost levels above $4 initially
- As these levels hit the upper band of the parallel channel, it is imperative to cross and gain $4.5 for the bullish streak to continue.
Collectively, the launch of the Terra 2.0 series does not seem to be in favor of the market as the prices have been plunging down since the beginning. On the other hand, after the recent LUNC-USTC episode, regaining investor confidence will be a tough task. And so it may take some more time for LUNA price to recover and establish a strong bullish trend.