In This Article:
Key Insights:
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LUNA hit a Monday high of $91.48 on a bullish day for the crypto market
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Anticipated TerraUSD demand following the $1bn LUNA private sales and use of a Bitcoin reserve remains a key driver
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A breakout from January high of $92.67 brings $100 into play
It was a particularly bullish day for LUNA on Monday. Recovering from an early morning low of $71.01, LUNA surged to a late intraday high of $91.66 before easing back.
Resistance at $92 and January’s high $92.67 pegged LUNA back late in the day. Reversing a 7.10% slide from Sunday, LUNA surged by 25.88% to end the day at $91.30.
Hitting a new February high and testing resistance at $92, the next target is now $100 and December’s ATH $103.36.
Stablecoin Demand Brings December’s ATH $103 Into View
Last week’s Luna Foundation Guard private sale continued to deliver support.
On Wednesday, news hit the wires of Luna Foundation Guard (LFG) raising $1bn in a private token sale. The LFG created a Bitcoin (BTC) denominated reserve for Terra’s largest stablecoin, TerraUST (UST).
Investors have bought into the Bitcoin reserve, which was introduced to reduce volatility, thus providing investors increased safety from market sell-offs.
LUNA Price Action
At the time of writing, LUNA was down by 3.25% to $88.33.
Technical Indicators
LUNA will need to avoid the $84.66 pivot to make a run on the First Major Resistance Level at $98.29. The broader crypto market would need to support a breakout from January’s high of $92.67.
Another extended rally would test resistance at $100 and December’s ATH $103.36. The Second Major Resistance Level sits at $105.31.
A fall through the pivot would bring the First Major Support Level at $77.64 into play. In the case of an extended sell-off, LUNA could test support at $70. The Second Major Support Level sits at $63.99.
Looking at the EMAs and the 4-hourly candlestick chart (below), it is a bullish signal. LUNA continues to hold above the 50-day EMA currently at $68.5. We have also seen the 50-day EMA pull away from the 200-day EMA overnight. A further widening of the 50-day EMA from the 200-day EMA would bring $100 levels into play.
A further widening of the 100-day EMA from the 200-day EMA would also support a run on $100.
Avoiding sub-$80 and the 50-day EMA at $68.5 would support another breakout.
This article was originally posted on FX Empire