Jun 28, 2022 04:00AM ET
By: AnalysisWatch
The price of LUNA 2.0 is poised for a 60% rally. This comes after its price broke the range from which it crashed violently in June. Now, it appears that buyers are trying to come back, which could lead to a rally.
LUNA's price established a swing high of around $2.79 on June 27, after rising 42%. While this rise was impressive, the move lost momentum. This, combined with increased selling pressure, caused the price of LUNA to pull back approximately 23%.
This recent pullback could be a boon for the upcoming mini rally that could take LUNA's price up to $3.50, which is also a major hurdle. With this in mind, investors should pay close attention to LUNA's price action over the next few days as its price is poised to hit the next hurdle.
Patient investors will be able to profit from the expected 60% gains, as LUNA 2.0's upside will likely be capped. However, if buyers decide to step in and turn this hurdle into a support level, it could lead to an extension of the rally.
In this scenario, the price of LUNA could rally a further 43% to the $4.98 price level. In total, the entire rally could earn investors a return on investment of 131%.
On the other hand, if LUNA's price is hit by heavy selling from the current position, it is unlikely to trigger the uptrend. If this version were to play out, and LUNA 2.0 were to produce a 4-hour candlestick close below $1.87, it would produce a lower low and invalidate the bullish thesis.
The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the views of CQ. No information contained in this article should be construed as investment advice.
CQ encourages all users to conduct their own research before investing in cryptocurrencies.