- LUNA price is in cooling down after its recent 41% explosive move.
- A bounce off the $1.85 to $2.08 demand zone could induce another rally to 2.80.
- A daily candlestick close below $1.85 will invalidate the bullish take.
LUNA price shows a sign of healthy retracement after an egregious spike in buying pressure that triggered a quick and swift run-up. The ongoing pullback will provide investors with another chance to rally.
LUNA price ready for more gains
LUNA price sliced through the two-month declining resistance level on August 1 by triggering a 41% ascent. This move also collected the buy-stop liquidity resting above the equal highs formed at $2.19.
While this rally fulfilled its objective, it is now undergoing a correction that could provide buyers with another opportunity. In fact, LUNA price has retested the $1.85 to $2.08 demand zone twice, so an upswing is likely to happen soon.
Assuming the buying pressure spikes again, this time, LUNA price could attempt a retest of the $2.80 resistance barrier. This move would represent a 38% ascent and is likely where the upside is capped for the altcoin.
Therefore, interested investors can keep a close eye on the reaction off the said demand zone.
Although unlikely given the current market conditions, a flip of the $2.80 level into a support floor will be indicative of the surging buying pressure. If this footing holds, LUNA price could eye the liquidity resting above $3.51.
This move would constitute a 72% gain from the $2.01 level.
LUNA/BUSD 1-day chart
Regardless of the bullish outlook, if LUNA price breaks below the demand zone’s lower limit at $1.85, it will invalidate the bullish thesis. Such a development could also open the path for a further downswing, where bears could trigger a correction to $1.60.