Terra price analysis: LUNA Coin shows the possibility of a cup and handle pattern

  • The LUNA coin has some retracements to make the handle of a cup and a handle pattern
  • The LUNA / BTC pair traded at 0.0002162 BTC with a loss of 3.99%.
  • The 24 hour volume LUNA coin is 330.6 million

The LUNA coin shows a possibility of the cup and handle pattern in the daily time frame. The price is currently showing a minor retracement to the $ 6.61 support to form the handle of this pattern. The key resistance for the pattern is $ 8.7 and coincides with the 0.618 FIB level and 100 EMA. Hence, once the price hits a strong breakout from this level, LUNA traders can grab an excellent long opportunity in the coin.

The LUNA coin price is currently trading below the critical value of 50, 100 and 200, where the price is currently only wobbling around 50 and 200 EMAs. However, the 100 EMA stands firm at the resistance level of $ 8.7 and should offer good resistance to the LUNA coin. The 20 EMA is hovering below price which gives it good support.

The RSI (BULLISH) the value is 53, which indicates a slight bullish momentum.

LUNA Coin shows a new ascending trendline on the 4-hour timeframe chart

The LUNA coin shows a fairly reliable ascending trend line in the 4 hour timeframe. At the moment the price has reached this trend line again, which shows a morning star pattern as a sign of the reversal of this line. Thus, traders can use this trend line to get into this cup-and-grip pattern early on.

The MACD indicator (BEARISH) shows a slight bearish price sentiment as both the MACD and the signal have moved below the neutral zone (0.00). However, the histogram shows the formation of decreasing red bars, indicating weakness in the bearish momentum.

Conclusion: From a technical point of view, the LUNA coin shows the possibility of an amazing cup and handle pattern. Once the price breaks the critical $ 8.7 resistance, traders can take an excellent long chance on this coin targeting one or two traditional pivot levels.

Support: $ 6.6

Resistance: $ 7.6, $ 8.7

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