• LUNA price is on the verge of confirming another breakout that could quickly propel it to $5.00.
• Terra needs to close the day above $2.30 to confirm to investors that the path with the least resistance is to the upside.
• Traders should approach LUNA price cautiously and with an open mind and realize that failure to break above the hurdle at $2.30 could mean a pullback.
The cryptocurrency market has been nothing short of a rollercoaster over the past year and the same can be said for Terra’s LUNA token. After reaching an all-time high of $8.56 in late February 2021, the coin has been in a steady downtrend for the last four months and is currently trading at $2.08. Despite the downtrend, the coin is showing signs of a possible breakout that could push its price to $5.00.
The key to this breakout is for Terra to hold support above the $2.00 mark. If it can do this, it will give buyers more time to accumulate the coin before the anticipated bullish move. Unfortunately, LUNA is facing declining volumes which, according to CoinMarketCap, have dropped -49% to $152 million in the last 24 hours. This is a concern because it is indicative of a lack of momentum and could mean the asset is unable to reach the $5.00 mark.
The 100-day Exponential Moving Average (EMA) is showing seller congestion in the area around $2.30 which is the next resistance level that needs to be broken for the bull run to continue. On the other hand, the Stochastic oscillator is in the overbought region which indicates that buyers have the upper hand. However, it could also mean that the uptrend is reaching its maximum elastic limit and could lead to a pullback.
In conclusion, investors should approach LUNA price cautiously and with an open mind. They need to realize that failure to break above the $2.30 resistance level could mean a setback for the coin. With that said, if Terra is able to close the day above this level, it would confirm to investors that the path with the least resistance is to the upside.