Missed LUNA? Here is a detailed analysis of its price and some levels to keep an eye on! Read more to find out the key entry points!
As Bitcoin (BTC) shows some signs of relief, altcoins across the board have gone up. However, none of them pumped as high as LUNA (as can be seen below). Since December 20, 2021, Terra
(LUNA) has outperformed and is showing no signs of slowing down. LUNA has some of the best charts in the market to look at right now, so let’s jump into them and see why.
is currently on a parabolic run right now. It is, therefore, difficult to find a level to open a long position
that offers the best reward. The price clearly has a lot of momentum, however, if LUNA successfully retests $77, it would be a perfect long position to hold. Currently, $100 is a magnet. At the time of writing, the price has not hit $100, since it is incredibly likely that LUNA will hit this target soon. The price will maintain a bullish market structure, providing that it doesn’t close below $53. For that reason, any dip is a great opportunity to catch a great long.
The demand zone at $61-$67 is an essential level to hold.
If the price goes down from there, buyers should step in to hold the price. As long as there is no break below $37, the bullish market structure will still be intact. RSI
is also close to invalidating a negative divergence, which is a positive sign as a negative divergence can be a powerful reversal indicator, especially on a weekly chart.
If the price was to capitulate to $21.70, it would be a good point to bounce. At this point, it is very unlikely we revisit these prices for a while. Let’s have a look at the LUNABTC chart to see whether LUNA is likely to continue to outperform the market benchmark.
LUNABTC looks very similar to LUNAUSDT. Providing that the price holds 0.0016 as a support, there is no reason why LUNA cannot continue to outperform BTC. It would be a great place to reload LUNA longs around this level. As long as the price does not close below 0.0011, LUNA will maintain a bullish structure and likely continue to touch new highs. Although BTC is generally the benchmark, it is also good to compare to different L1s, with Ethereum (ETH) being the main L1. Let’s have a look at it!
Ethereum is the benchmark Layer 1 as it is the second biggest cryptocurrency (according to CoinMarketCap). The LUNA/ETH chart clearly has no intention of slowing down. Therefore, it can be inferred that LUNA will continue to outperform. The price does seem to have encountered some sellers. If they start dumping their coins, it could drop to 0.018. If it flips this level, it would be an incredible buying opportunity. Any dip should be seen as an opportunity right now.
Over the past few months, there has been a clear rotation between three coins. LUNA is one, Solana (SOL) and Avalanche (AVAX) are the other two. They are all L1s who have been pumping hard in particular, likely because of ecosystem incentives. Hence, it is good to compare the three to see where the capital is currently flowing into, and where we can predict it to go next.
At first glance, the LUNAAVAX chart does not look particularly bullish. However, the price has just broken the bearish market structure. Therefore, buyers can now be confident in positions as it is now forming a bullish trend. The token is currently heading towards the resistance level. Nevertheless, if the price can flip 0.875 then there is no reason why it cannot run to 1.15. There is very little price history available above this level, meaning that buyers will likely not face any rotation above this level. Being cautious at 0.82 is wise though.
LUNA/SOL has recently broken out of a massive 9-month accumulation range. It is currently at resistance, with price rejecting the 0.509 level. It would actually be good to see the price retest 0.435 for a S/R test. Usually after breaking out of an accumulation zone, the price goes up. So if it flips 0.509, it will move up to 0.629 relatively faster as there is little to no price history.
A break above 0.629 would cause the price to go parabolic relative to SOL for the same reason I just outlined. LUNA/SOL has only been down in charts, so we don’t have as much to talk about on charts. Therefore, targeting 1 SOL is out of the question for LUNA right now. The only thing to watch out for is the clear negative divergence.
- Since the 20th of December, when BTC bottomed, LUNA has outperformed the market giving returns of more than 20% in just two days, with returns of 70% in just eight days. This clearly represents a growing demand for the coin in the market.
- 1-day and 1-week charts show a clear demand with a few good entry points since the coin has gone up quite rapidly. It can, therefore, be inferred that looking out for any dip to buy the coin, with $77 being the closest support, is a good idea.
- LUNA/BTC and LUNA/ETH 1-day charts show the same picture, with the price going up pretty fast due to the recent run. There is a clear negative divergence on the LUNA/ETH chart. Therefore, caution should be exercised as ETH may start to outperform. However, as long as the price holds the 0.018 level on the ETH chart and 0.0016 level on the BTC chart, it would be smart to “buy the dips” as price will likely look for new highs.
- If LUNA can continue to outperform in January (which is one of the most bullish months for ETH/BTC and the SPX), then we may see even bigger gains as altcoins will likely catch a bid if ETH goes up.
- The SOLUNAVAX rotation is clearly at LUNA right now, with charts looking as if LUNA is going to outperform SOL and AVAX in the foreseeable future.
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