When Terra rebranded into Terra Classic, there was a bit of fun fare. But investors did not really buy into the idea. As a result, Terra 2.0 plummeted shortly after launching. The coin has lost 85% from its airdrop price. But there is an opportunity for LUNA to actually deliver astonishing short-term gains. Here are the highlights.
After massive volatility, LUNA appears to have established strong support at $3.5.
The coin has also established a trading range between $3.5 and $10.25.
We expect this range to come into play over the coming weeks.
Data Source: TradingView
How LUNA could deliver 4x growth
Our thesis on LUNA’s short-term bullish setup is based on the range mentioned above. You see, despite facing massive volatility, the coin has established a consistent range between $3.5 and $10. Also, $3.5 is now the strongest support zone, and despite massive selling pressure, LUNA has managed to keep the price above this.
A consolidation phase is now happening, and in the coming days, LUNA could easily retrace its $3.5 to $10.25 range. This will deliver gains of nearly 3x from the current price. However, we don’t think $10.25 will be the end of everything.
If LUNA is able to get to double digits within a short time, it could trigger immense demand that could deliver more returns. Besides, there is a very limited downside risk to this setup. Even if LUNA loses the $3.5 support, we expect it to jump right back up in no time.
LUNA’s long-term prospects?
The volatility around LUNA is not going to abate soon. However, we expect the price to be a bit more predictable within the $3.5 and $10.25 range.
LUNA will likely remain within this range for a few months before it finds any serious upward momentum. The good news however is that downside risk appears to have eased a bit.