Over the last few days altcoins have displayed bullish price momentum and volatile behavior. But today, Terra 2.0 Luna has claimed the throne for probably being the most volatile.
From a technical analysis perspective Terra Luna looks extremely bullish as it breaks out of the macro descending channel.
If positive price momentum is maintained there is a chance that Terra Luna might be able to retest the day one all time high from May 31st (launch day) just like Luna Classic (LUNC) recently did.
This means with enough bullish momentum Terra Luna may be able to retest and break through the $11.86 price level.
Terra Luna broke through a key resistance level of $2.82 which allowed it to rocket through multiple resistance levels which have been flipped into support.
Earlier today Terra Luna surged to $7.80 before losing steam and getting rejected. Currently Terra Luna is trading at $5.99.
Analyzing the price action of Terra Luna on a smaller time frame we can see that there is an imposed risk that we may lose the $5.72 support level of a descending triangle pattern. Typically, this is a bearish continuation pattern.
If we lose this key area of support we could see continuation back down to the $4.72 support level at the beginning of the bull pennant.
The bullish scenario for Terra Luna is that we break through the $6.03 resistance trendline and potentially retest the $7.80 price levels where it could then be possible for Terra Luna to surpass $10 once again.
It is worth noting that Terra Luna is extremely over extended on the 20-day moving average, the relative strength index also reached 99.87 on the 5-minute time frame which reflects it is extremely overbought - stay risk averse.
Euphoric pumps like this come with major risk and extreme volatility. The price could be up or down by 50% tomorrow, it is extremely hard to forecast a pragmatic target under these particular conditions.
According to Coinmarketcap, Terra Luna is up 197% on the day and is rank #57 amongst other cryptocurrencies. The market capital for Terra Luna is now $698 million and the chance of breaking back through $1 billion seems reasonable.
Terra Luna Classic (LUNC) Falls by 39%
Whilst Terra Luna rockets in price, Luna Classic (LUNC) decides to do the complete opposite. Could there be an inverse correlation?
Just yesterday Terra Luna Classic (LUNC) was trading at $0.00059 and since then has slipped away down to $0.00045.
Today LUNC fell as low as $0.000363 which triggered a great amount of fear and panic amongst retail investors.
The correction today for LUNC was 39%, this is actually quite normal for extremely cryptocurrencies under extremely volatile conditions, LUNC must now consolidate around the $0.000457 price levels in order to prevent further continuation to the downside.
Terra Luna Classic lost support from its symmetrical triangle as displayed by the image above. LUNC has bounced over 25% already from today's swing low, which reflects the bulls are fighting back and there is a lot of buying pressure around these lower price levels. Some may even call it dollar cost averaging.
Much of the Terra Luna Classic pump is coming from the heavily awaited 1.2% tax burn which will remove 1.2% of the supply per transaction.
