LUNA 2.0 Could See 45% Sell-Off if BTC Doesn’t Make a Move
CoinEdition
Published Jun 04, 2022 04:39AM ET
Updated Jun 04, 2022 05:00AM ET
LUNA 2.0 Could See 45% Sell-Off if BTC Doesn’t Make a Move
- The price of LUNA 2.0 looks to be consolidating above the range’s midpoint.
- Investors can expect a sweep of the range low at $3.50 soon since the range high was swept recently.
- If BTC does a short rally and LUNA 2.0’s price breaks $10.20 to make it a support level, then the bearish theory will be invalidated.
The price of LUNA 2.0 looks to be consolidating above the range’s midpoint, which is indicative of a lack of volatility. This price action follows a recent explosive move above the upper limit. This may be a result of investors booking profit.
LUNA 2.0 established a price range extending from $3.50 to $10.20 and has been trading within this range ever since the airdrop. On May 28, LUNA 2.0’s price set a base at $4.98, and then exploded by 137% to sweep the range high at $10.20.
This move was accompanied by profit-taking from investors which ultimately led to a 42% decline, pushing the price of LUNA down to the range’s current midpoint at $6.85. As the airdropped token battles with this level, the chances of a decline seem to be more and more likely.
Investors can expect a sweep of the range low at $3.50 soon since the range high was swept recently. This downtrend will provide bulls a chance at recovery around the $4.98 support level. Should the price fail to hold up at this level, then LUNA’s price could plummet to $3.50.
In total, the decline would be around a 45% loss and the downside for LUNA would be capped at around this level.
LUNA 2.0’s price consolidates at midpoint of range (Source:TradingView)
Although things are looking bearish for LUNA 2.0, a quick uptrend in Bitcoin’s price could change the sentiment around the token. If this happens, and LUNA’s price produces a 4-hour candlestick close above $10.20 to flip it into a support level, then the bearish theory will be invalidated.
Continue reading on CoinQuora
Get The News You Want
Written By: CoinEdition
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.