Terra’s LUNA token has been among the hardest-hit cryptos especially because of its crash. LUNA’s price collapsed by over 99% as its ecosystem suffered a devastating liquidity crunch. However, according to crypto analyst CryptoAnalystSignal, LUNA may be positioning for a bullish turnaround.
In a recent tweet, the crypto analyst chart monkey pointed to signs of strengthening support for LUNA around the $0.72 level. He believes the token’s multi-month selloff could be approaching exhaustion.
LUNA has plunged over 50% in the past year amidst the crisis of confidence in Terra. Recently, it dipped below $0.75 before stabilizing around that price. Over the past 24 hours, LUNA has surged 2% off its lows to currently trade around $0.75.
Falling Channel Signals Potential Trend Change
Importantly, CryptoAnalystSignal highlights positive divergence on the 4-hour chart, with LUNA appearing to move within an established falling channel after breaking down from its long-term uptrend.
“Consider buying on the current pullback as the price of @terra_money LUNA is moving in a falling channel on 4H frame with strong support,” the analyst tweeted. This falling channel pattern suggests the brutal selloff could be losing momentum, setting the stage for a relief rally.
If support around $0.75 continues to hold up despite bearish sentiment in crypto markets, the analyst says LUNA’s price could be poised to revisit key upside levels. Specifically, he is watching three potential price targets at $0.81, $0.89, and $0.98.
After declines exceeding 50% year-to-date, LUNA remains in a firm downtrend on most timeframes. However, speculators appear to be positioning for a trend change given emerging signs of relative strength. The analyst’s targets represent potential areas where LUNA could encounter significant supply if the current falling channel pattern breaks to the upside.
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