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The continuous formation of bullish candles shows no weakness in the LUNA coin price uptrend. Hence, the breakout of the $70 barrier is possible.
Terra seeks to set itself apart through its use of fiat-pegged stablecoins, stating that it combines the borderless benefits of cryptocurrencies with the day-to-day price stability of fiat currencies. It keeps its one-to-one peg through an algorithm that automatically adjusts stablecoin supply based on its demand.
Let us now move ahead to the technical analysis of the Terra token.
Past Performance of LUNA
The LUNA token price found demand near the $40 mark resulting in the ongoing uptrend. Thus, resulting in the price jump of more than 65 percent in the past week.
Moreover, the continuous formation of the bullish engulfing candlesticks brings the price closer to the $70 resistance. Hence, the breakout of this level can be an excellent entry spot.
LUNA/USD Daily Chart
LUNA Technical Analysis
It is worth noting that the LUNA coin price on the daily chart displays Pivot Levels between the $78 and $95 levels which can lead to the reverse of the bearish trend. On the other side, the support levels are $55 and the $45 mark.
The RSI indicator is able to keep its slope over the overbought zone (70) within the day chart. Hence, the token price can shortly give a retracement as a retest of the bullish breakout.
The MACD and the signal line trend higher in the positive segment in the daily chart. Moreover, the lines continue to grow with the positive histograms. Hence, the indicator gives a buy signal.
Upcoming Trend
The LUNA coin price action shows a strong uptrend in action in the daily chart. Hence, the breakout of the $70 mark can provide a buy entry spot.
However, traders can see a short-retracement in the coin price as the price never gave a retest of the bullish breakout.