LUNA coin price forms a rounding bottom pattern in the 4-hour chart. Hence, the breakout of $48 will lead to a bull run shortly.
Terra's native token LUNA is used to stabilize prices for the protocol's stablecoins. LUNA holders can also submit and vote for governance proposals, giving it the functionality of a governance token. Terra is a fiat-pegged stablecoin that Terra uses to distinguish itself. It claims it combines the benefits of cryptocurrencies and the stability of fiat currencies.
Let us now take a deep look into the technical analysis of Terra's cryptocurrency.
After the fallout of the double top pattern near the $48 mark, the LUNA coin price fell to lower levels of the $35 mark. However, the recent bullish rise drives the price higher back to the formidable $48 level.
Considering the long-term price action, it forms a rounding bottom formation in the 4-hour chart. Moreover, the $48 level acts as the neckline of the pattern. Hence, the breakout of this level will generate a low-risk, high return entry opportunity.
Source - Tradingview
As of this writing date, Terra's cryptocurrency value is $43.09. In addition, the cryptocurrency's value has fallen by 1.30% in the last 24 hours, with a boom of 20% in the trading volume.
The Pivot Points in the daily graph indicate that the following levels can play an important role. The $60 or $75 levels may be an obstacle in the bullish run upon the $48 breakout. Low levels of $35 or $25 can act as support.
The MACD indicator in the daily chart finds support slightly above the central line. Moreover, the fast and slow lines generate bullish crossover. Therefore, the indicator has a bullish signal regarding LUNA crypto.
With the bullish pattern formation, the RSI indicator projects a boom in underlying bullishness. This signals a strong uptrend.
The bullish nature of the price action can be seen in the combination of technical indicators and the price pattern of Terra's cryptocurrency.
For traders, the entry opportunity awaits the breakout of the rounding bottom pattern. We can see a noteworthy jump in coin price upon the bullish breakout of the $48 mark.