Luna Price Analysis: Following 50% Surge in a Week, What’s Next for LUNA?

Luna Price Analysis: Following 50% Surge in a Week, What’s Next for LUNA?

Key Support level: $77

Key Resistance level: $100

After Luna touched the support at $55, the price entered into a massive rally, almost doubling in price in less than 10 days. Today, Luna stopped $2 short of hitting $100. The bulls will have to wait for another day to see Luna at three digits. As such, the resistance sits at $100, and the key support is now found at $77.

Luna continues to be one of the strongest performers on the market, with its Terra network recently replacing Binance Smart Chain as the second largest network by total value locked after Ethereum.

Technical Indicators

Trading Volume: Volume has maintained high throughout this bullish rally. This is an impressive achievement considering the overall market was in a very bearish state not too long ago.

RSI: The RSI has entered the overbought territory on the daily timeframe. When this took place in early December, Luna corrected over 30%. This is why it’s important to remain very careful.

MACD: The daily MACD is bullish and gives no sign of immediate weekness. If the MACD histogram will make a lower high in the future, that should be interpreted as a warning sign that this rally may end.

Bias

The bias on Luna is bullish but it’s important to remain vigilant, especially around $100.

Short-Term Prediction for Luna Price

Luna continues to be propelled by strong fundamentals. This is likely to continue as long as the overall market remains bullish. It is important to be cautious now as every strong rally is followed by a correction. If Luna fails to break above $100, then the price could fall to the support at $77.

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