Terra Price Prediction: In the past three days, Terra Luna (LUNA) has encountered significant momentum, surging by 34% to currently trade at $0.34. This upswing seems to be aligned with the notable growth observed in Algorithmic Stablecoin TeraClassicUSD (USTC), following a strategic investment move aimed at its revival. This surge in the LUNA price also signifies a decisive breakthrough from the resistance trendline of a prolonged falling wedge pattern, suggesting an early indication of a potential trend reversal.
Also Read: Terra Luna Classic Community Passes Crucial Proposal; LUNC And USTC Price Skyrockets
Is $LUNA Heading to $3?
- The LUNA price rising for three consecutive days with increasing volume indicates sustainable growth.
- Completing the falling wedge pattern sets the coin LUNA price for 200
- The intraday trading volume in the LUNA coin is $688 Million, indicating a 355% gain.
Source- Tradingview
Over the past year, the Luna Price has maintained a consistent downtrend, following the development of a falling wedge pattern with two dynamic trendlines acting as both resistance and support.
However, the convergence nature of this pattern signals a reduction in bearish momentum, indicating a potential downturn in maturity. After encountering multiple rejections at the pattern’s upper boundary, the coin price successfully breached this barrier, recording a 10% intraday gain.
This increase appears to be a ripple of the growth in USDT stablecoin after Terra Classic Lab acquired $25.6 million USTC, valued at approximately $500,000, as part of its treasury strategy, purchased at an average price of $0.021.
At present, the LUNA price is trading at $0.83, and if the buyers maintain levels above the breached resistance, they could potentially continue the recovery rally as indicated by the channel pattern, targeting around $2.54, followed by $3.
Is this Recovery Sustainable?
Examining the daily timeframe chart reveals a long-wick rejection connected to the breakout candle, suggesting that buyers are encountering difficulties in sustaining these higher levels. Failure of the news-driven rally to maintain this breakout might nullify the previously mentioned bullish thesis, potentially resulting in a bull trap that could intensify selling pressure, causing the price to drop back to $0.55
- Average Directional Index: The ADX slope currently stands at 39%, indicating a potential exhaustion point that might support a minor pullback
- Super Trend indicator: A green film on the daily chart of this trend-defining indicator signifies a positive sentiment prevailing in the market.
