The price of Luna decreased by 3.8% today following a sudden crash that hits the overall market. It rolled back to the $1.3 trading zone. Due to low buying volume over the past weeks, it is yet to show a sign of strength.

Since the collapse of the Terra ecosystem which led to a huge crash in May 2022, the price has been struggling to recover from it.

A few days after the price surged to around $7.6 last September, Luna rolled consistently until it finds a local bottom near the $1 psychological level in December. It rebounds off that level and increased to the high of $2.55 in February.

A four-week correction from that high brought the price back to $1.2, acting as the current yearly low. This price swing led to a bullish formation on the daily chart but later became weak.

The potential bullish rally is now suspended due to several losses in the past few days. However, this shows that the supply level is rising due to increased selling volume.

Even if the volume increases further, it would need to plunge beneath the yearly low to activate a strong bearish rally. An increase above $1.65 could set the price for a bullish action. On a yearly scale, Luna is still down by 98%.

From the current trading level, the $1.46 and $1.65 resistance levels are the first price target for an increase. Above it lies the $2 psychological level before rising to $2.34.

Losing the weekly low of $1.3 could trigger a steep price drop. The support levels to watch for such actions are $1.2 and $1.1. An extension below these levels could lead to another price crash.

Key Resistance Levels: $1.46, $1.65, $2

Key Support Levels: $1.3, $1.2, $1

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Image Source: ximagination/123RF // Image Effects by Colorcinch

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