Terra’s (LUNA) price jumps for the second session in a row on Wednesday. Luna has been consolidating for many days before the recent significant price action. Price found reliable support near the $45.0 level.
- Terra (LUNA) continues the previous session’s gains on Wednesday.
- A decisive close above 50 EMA would result in further upside momentum.
- Risk-on sentiment builds up the demand for riskier assets.
As of press time, LUNA/USD is trading at $56.96, up 3.96% for the day. The ninth-largest cryptocurrency held 24-hour trading volume at $2,340,403,257.
LUNA seeks 20% upside
On the daily chart, Terra (LUNA) has dropped 52% from the record highs made on December 27 at 103.68. After testing the 2022 lows at $43.45, the pair has been trading in a tight range of $45 and $60.0 since late January.
Now, LUNA/USD attempts to pierce above the descending trend line from the all-time highs. The bulls tried to push over on January 16 but failed to do so. Even Luna sliced through the crucial 50-EMA (Exponential Moving Average) at $74.35. The price action depicts the impact of downside pressure with no interim relief in between.
This time LUNA looks optimistic to breach the bearish slopping line as can be seen by the formation of two consecutive green candlesticks. Another green candlestick will form the ‘three white soldier’ pattern, a bullish continuation formation.
The immediate first target could be found at January 25 highs of 67.15 followed by the psychological $70.0.
On the flip side, a rejection near the downside trend line could drag the price back to the lows of the consolidation phase near $45.00.
Next, a spike in sell orders could explore $39.0, levels last seen in November.
Technical Indicators:
RSI: The Daily Relative Strength Index (RSI) jumps toward 51 with a bullish crossover.
MACD: The Moving Average Convergence (MACD) still trades below the midline but maintains the upside bias.
