- LUNA price retraces after rallying 42% over the last 24 hours.
- The ongoing retracement hints at a 60% upswing to $3.50.
- A four-hour candlestick close below $1.87 will invalidate the bullish thesis.
LUNA price breached the range it was trading in and crashed violently in June. However, buyers seem to be making a comeback, suggesting that a recovery rally is in effect.
LUNA price prepares for take-off
LUNA price rose 42% on June 27 and set a swing high at $2.79. While this upswing was impressive, the altcoin faced exhaustion combined with a sudden spike in selling pressure. As a result, there was a 23% retracement.
This pullback is a blessing in disguise for the next leg-up that is likely to push LUNA price to the next significant hurdle at $3.50. Therefore, investors need to pay close attention to the price action as it is primed for the next leg-up.
Patient investors can capitalize on the anticipated 60% in gains where the upside is likely to be capped for LUNA 2.0. However, if buyers step in and flip this hurdle at $3.50 into a support floor, it could result in the rally’s extension.
In such a case, LUNA price could further rally 43% to the $4.98 hurdle or the $5 psychological level. This run-up, in total, would amount to a 131% ascent and is likely where the upside is limited for the altcoin.
LUNA/USDT 4-hour chart
On the other hand, if LUNA price faces an intense sell-off from the current position, the uptrend is unlikely to trigger. In such a case, if LUNA 2.0 produces a four-hour candlestick close below $1.87, it will create a lower low and invalidate the bullish thesis.
This crash could cause LUNA price to dive to the next support floor at $1.69.
