LUNA Technical Analysis: Is LUNA Rising Back From Its Ashes? 

The LUNA prices exceed the $6 mark after jumping from the $1.5 bottom level resulting in a jump of 200% in the last 24 hours. The bullish engulfing candle and the lower price rejection in the daily candle tease an uptrend continuation in the Terra market value. So, should you consider joining the uptrend?

Key Points:

Source - TradingView

LUNA Technical Analysis

The LUNA price action displays a bearish start for the new token as the market value dipped from the listing price of approx. $10 to the bottom support of $1.50. The bearish trend slowly led to a consolidation range between $1.5 and $2.5, which stretched for almost four months.

And then, the Terra Foundation announced the new supply burn rule where 1.2% of every transaction will get burned to avoid any surge in supply. Last summer, the TerraUSD lost its peg to the U.S. Dollar due to the increased supply of LUNC (then known as LUNA), derailing the entire ecosystem. The LUNA crash is at the heart of the ongoing crisis in the crypto market, and this supply rule hopes to avoid repeating the dark past.

The new Terra (LUNA) operates separately from Luna Classic, but the slightly increased hope among the investors results in the bull run. The market value spikes above the 50% Fibonacci level and projects the possibility of an uptrend to the 61.80% Fibonacci level at $8.40.

On a bearish note, a reversal from the $6 will likely drop to the $4 mark.

Technical Indicators

The daily-RSI slope spikes into the word zone as it bounces from the halfway line reflecting a phenomenal improvement in the underlying bullish sentiments.

The MACD and signal lines diverge sharply after the recent bullish crossover resulting in a substantial bullish gap with a spike in the positive histograms.

Thus, the indicator reflects a considerable demand for the LUNA token growing overnight, which may shortly pause the market value above the $8 mark.

Resistance Levels - $8 and $10

Support Levels - $4 and $2.5