- LUNA coin has shows some retracement to make the handle of a cup and handle pattern
- The LUNA/BTC pair was trading at 0.0002162 BTC with a loss of 3.99%
- The 24 hr volume LUNA coin is 330.6 Million
The LUNA coin shows a possibility of the cup and handles pattern in the daily time frame. The price currently shows a minor retracement till the $6.61 support to form the handle of this pattern. The key resistance for the pattern is at $8.7, coinciding with the 0.618 FIB level and 100 EMA. Therefore, once the price gives a strong breakout from this level, LUNA traders can grab an excellent long opportunity in the coin.
The LUNA coin price is currently trading below the crucial of 50, 100 and 200, in which the price is currently just wobbling around the 50 and 200 EMA’s. However, the 100 EMA stands firmly with the $8.7 resistance level and should provide good resistance to the LUNA coin. As for the 20 EMA, it is moving below the price, providing good support to it.
The RSI (BULLISH) value is at 53, indicating a slight bullish momentum.
LUNA Coin Shows A New Ascending Trendline In The 4hr Time Frame Chart
The LUNA coin shows a quite reliable ascending trendline in the 4hr time frame. Right now, the price has again come to this trendline, giving a morning star pattern as the sign of reversal from this line. Thus, traders can use this trendline to get early entry in this cup and handle pattern.
The MACD indicator (BEARISH) shows a slightly bearish sentiment in price as both the MACD and the signal have moved below the neutral zone(0.00). However, the histogram shows the formation of declining red bars indicating weakness in the bearish momentum.
Conclusion: From the technical perspective, the LUNA coin shows a possibility of an amazing cup and handle pattern. Once the price gives a breakout from the crucial resistance of $8.7 level, traders can grab an excellent long opportunity in this coin, providing a target of one to two traditional pivot levels.
Support: $6.6
Resistance: $7.6, $8.7