The minor correction devalued the LUNA/USDT pair by 15%, reaching the $86 mark. The buyers sustained above this new flipped support and tried to bounce back with a double bottom pattern. The bullish pattern could drive the altcoin by 11% and rechallenge the 100 resistance.
Key points:
- The long-tail rejection candle at the $86.6 level suggests it as valid support.
- The 50-and-100 DMA is nearing a bullish crossover in the daily time frame chart
- The intraday trading volume in the LUNA is $2.59 Billion, indicating a 19.65% loss.
Source- Tradingview
On March 10th, the Terra(LUNA) price retested the All-Time High resistance of the $100 mark. The higher price rejection candle at this level indicated an upcoming pullback, which plunged the altcoin to $86.5 support.
On Friday, the hammer candle(long-tail candle) suggests the buyers got a good foothold at this local support. Today, the coin price is up by 3.65%, forming a morning star candle pattern. Moreover, this second rebound from the $86.5 hints at the formation of a double bottom pattern.
For the pattern completion, the buyers need to surge above the $100, indicating the coin is ready to reach new heights.
Contrary to the bullish thesis, if sellers pull the coin price from $100 resistance, the resulting bearish reversal would threaten a possible breakdown from the $86.5 support.
- Resistance levels: $95 and $100
- Support levels: $86.5 and $77.5
Technical indicator
DMA: The recent correction managed to hold above the $20 DMA. The rising 50-DMA could soon cross above the 100 DMA, providing an extra edge to long traders.
Vortex Indicator: A bullish crossover among the VI+ and VI- bolster the buyers to breach the $100 mark.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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Source: https://coingape.com/markets/105027-2/