LUNA (Terra) is on the cusp of a significant breakout, drawing the attention of traders and investors. Recent developments indicate that LUNA has confirmed a notable Regular Bullish Divergence, a chart pattern suggesting that downward pressure may be waning.
Technical Indicators Point to Bullish Surge
LUNA’s breakout from a smaller Falling Wedge pattern further supports the possibility of an impending sharp upward move. This combination of a bullish divergence and a wedge breakout is a strong indicator of a potential trend reversal.
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The Regular Bullish Divergence occurs when the price forms lower lows, while momentum indicators, such as the RSI, display higher lows. This divergence often signals a shift from bearish to bullish momentum.
The Falling Wedge pattern, another bullish signal, occurs when price action narrows within converging trendlines, typically preceding a significant price rally. When LUNA’s price breaks above the wedge’s resistance, it often triggers a substantial upward movement.
Targeting $9.12: The Path Ahead
With this technical setup, LUNA appears ready for a substantial rally. The $9.12 target aligns with previous key resistance levels, making it a realistic goal in the coming weeks or months. To achieve this target, LUNA must surpass several critical levels, starting with the next major resistance at $3.50.
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While some selling pressure may emerge at this level, the bullish momentum could allow LUNA to breach it with relative ease. If volume increases during this breakout, it would confirm the rally and bolster the case for sustained price gains.
Traders and investors will be closely monitoring these developments, as LUNA’s price action in the near term could set the stage for a significant upward trend.
