LUNA 2.0 Could See 45% Sell-Off if BTC Doesn’t Make a Move
2022.06.04 12:21
LUNA 2.0 Could See 45% Sell-Off if BTC Doesn’t Make a Move
- The price of LUNA 2.0 looks to be consolidating above the range’s midpoint.
- Investors can expect a sweep of the range low at $3.50 soon since the range high was swept recently.
- If BTC does a short rally and LUNA 2.0’s price breaks $10.20 to make it a support level, then the bearish theory will be invalidated.
The price of LUNA 2.0 looks to be consolidating above the range’s midpoint, which is indicative of a lack of volatility. This price action follows a recent explosive move above the upper limit. This may be a result of investors booking profit.
LUNA 2.0 established a price range extending from $3.50 to $10.20 and has been trading within this range ever since the airdrop. On May 28, LUNA 2.0’s price set a base at $4.98, and then exploded by 137% to sweep the range high at $10.20.
This move was accompanied by profit-taking from investors which ultimately led to a 42% decline, pushing the price of LUNA down to the range’s current midpoint at $6.85. As the airdropped token battles with this level, the chances of a decline seem to be more and more likely.
Investors can expect a sweep of the range low at $3.50 soon since the range high was swept recently. This downtrend will provide bulls a chance at recovery around the $4.98 support level. Should the price fail to hold up at this level, then LUNA’s price could plummet to $3.50.
In total, the decline would be around a 45% loss and the downside for LUNA would be capped at around this level.
LUNA 2.0’s price consolidates at midpoint of range (Source:TradingView)
Although things are looking bearish for LUNA 2.0, a quick uptrend in Bitcoin’s price could change the sentiment around the token. If this happens, and LUNA’s price produces a 4-hour candlestick close above $10.20 to flip it into a support level, then the bearish theory will be invalidated.
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