LUNA price analysis signals bullish continuation, after a liquidity sweep at key support levels. According to Crypto Patel, Terra LUNA shifted into a bullish structure after clearing sell-side liquidity from range lows.
The Terra LUNA price trades near $0.070, gaining nearly 13% in 24 hours. TradingView data shows rising momentum, while CoinGlass reports a 92% surge in futures volume.
Bullish Structure Formed By LUNA Price After Liquidity Sweep
Crypto Patel stated that the Terra LUNA price action confirmed a major shift in market structure after the clean-up of sell-side liquidity at the range low. The market went into a new bull phase after breaking structure.
After entering the new market structure and going into a bull phase, Terra LUNA is now backtracking into a clearly defined order block area. These clearly defined order blocks are typically zones where buyers can enter the trade before price moves continue to higher liquidity areas.
There are clearly defined liquidity cluster areas above the current range that will be upper bounds for further price expansion.
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Technical Indicators Confirm the LUNA Price Analysis
TradingView indicator data shows that the Terra LUNA price is currently residing above two significant exponential moving averages (EMAs), which are the 20 EMA and 50 EMA.
Both EMAs will function as support lines for the short-term price action. The relative strength index (RSI) is currently sitting above neutral levels, and this indicates sustained buying pressure.
Additionally, the MACD is showing a bullish cross, confirming the continuation narrative. Fibonacci retracements show support ranging between $0.066 and $0.068.
If Terra LUNA successfully makes a sustained move above these levels, analysts suggest this could lead to further upside, though confirmation is required.
Derivatives Data Validates LUNA Price Prediction
CoinGlass data showed that funding spreads are slightly negative, even though price action continues to rise. Negative funding spreads indicate caution among traders following the continued buying during the bullish phase.
In addition to funding spreads, the data from the derivatives market shows rising open interest and an increasing number of participants within the market. With funding spreads elevated, it indicates a potential for increased volatility within the markets.
However, since there is still short positioning prevalent within the market, a short squeeze may occur. This increases the chances of additional upsides, validating the bullish scenario outlined within this current LUNA price prediction.
Source: CoinGlass
Targets For The LUNA Price Prediction
Crypto Patel stated the potential targets for upside were $0.0680, $0.0730, and $0.0764. All three potential targets are located directly above identifiable liquidity zones and prior resistance points.
The current LUNA price prediction is expected to have a bullish outlook as long as the Terra LUNA price holds its current market structure. The point of failure or violation of this prediction will be if Terra LUNA closes under $0.0550 on the daily close.
This would invalidate this LUNA price prediction, which was for an upward expansion of price. Traders need to confirm that Terra LUNA holds its structure at the order block before it starts continuing upward toward higher liquidity.
The bullish bias in this LUNA price analysis is supported through all aspects of this LUNA market, including market structure, derivatives data, and technical indicators.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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