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Although the outlook for LUNA appears bullish, LUNA market price is currently experiencing a consolidation in buying volumes.
As a result, Terra’s LUNA price remains trapped within a crucial support level at $0.91 and a resistance level at $1. In May 2022, the TerraUSD (UST) stablecoin experienced a crisis, losing its $1 value and leading to significant losses and bankruptcy filings in the crypto market.
Further, Kwon is currently facing criminal charges in the United States and South Korea for fraud, securities law violations, and other offenses related to the crash. Despite the accusations, Kwon denies the charges and argues that the mistakes leading to the impact were made by Terraform Labs, not by him or the company intentionally deceiving investors.
He further claims that the charges against him in South Korea are politically motivated. Kwon and Han are scheduled to appear for their next hearing on June 16.
LUNA Token’s Price Recovery and Potential Targets
LUNA, the token that emerged after the TerraUSD (UST) crash in May of the previous year, has gradually recovered from its support level of $0.85 and is trading at $0.91 at press time. However, its price movement is currently constrained by the 50-day Exponential Moving Average (EMA) at $0.9617.
The Relative Strength Index (RSI) further strengthens the bullish sentiment surrounding LUNA, as it exhibits a positive divergence and remains above both the midline and the ascending trendline.
For LUNA’s price recovery to continue and surpass the $1 mark, it is necessary for the bulls to successfully push the token’s value above the 50-day EMA, represented by the red line on the chart.
On the four-hour chart of LUNA/USD, if the price breaks and sustain above the $1 level, it would not only confirm the bullish momentum of the token but also open up opportunities for further gains. The initial targets for such an upward move would be $1.2, followed by $1.5 and $2.
However, traders would closely observe certain signals to validate this bullish scenario. One important factor would be LUNA’s ability to overcome potential resistance from sellers clustered around the 50-day Exponential Moving Average (EMA) represented by the blue line. Additionally, a successful breakthrough above the 200-day EMA, showed by the green line, would further reinforce the positive outlook for LUNA.
LUNA Price Prediction – LUNA/USDT Daily Chart Analysis
Terra’s LUNA token has experienced a significant price decline, and its investors are currently facing a precarious situation. The support level broken at $1.1 lowered the price to $0.9, showing a shift in market sentiment. The ongoing sell-off and overall instability in the cryptocurrency market could exacerbate the situation.
While a recent support level was established at $0.88, there is no guarantee that it will be sufficient to withstand the bearish pressure. LUNA’s price may continue consolidating, trading between $0.90 and $0.98. However, it’s important to note that these projected losses could extend even further.
Analyzing the charts, we can also observe that LUNA is trading below all major moving averages on both the four-hour and daily timeframes. This suggests a negative trend and shows that the token faces significant resistance from these moving averages, including the 50-day EMA and the 200-day EMA.
However, the RSI argues that Terra’s LUNA price has exhausted the downtrend and is preparing for a rebound as it sits on the lower end of the neutral region, slightly above the oversold area.
For a positive outcome to occur from the recently oversold conditions, bulls must overcome their fear and rejoin the market, restoring LUNA buying volumes. For LUNA to sustain the climb, it must surpass the upper range limit of $1.1.
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