Terra Price Prediction as Downtrend Reaching Maturity; Is $2 Within Reach?

Terra Price Prediction: Last week, the LUNC price witnessed a significant surge in buying pressure mainly due to the massive rally in Algorithmic stablecoin TerraClassicUSD (USTC). Amid this rally, the buyers showcased a breakout attempt from a long-coming falling wedge pattern. This breakout could reflect an early sign of trend reversal and intensify the buying momentum.

Also Read: Terra Luna Classic Community Passes Crucial Proposal; LUNC And USTC Price Skyrockets

Is $LUNA Heading to $3?

• The LUNA price rising for three consecutive days with increasing volume indicates sustainable growth.
• Completing the falling wedge pattern sets the coin LUNA price for 200
• The intraday trading volume in the LUNA coin is $688 Million, indicating a 355% gain.

Source- Tradingview 

Over the past year, the Luna Price has maintained a consistent downtrend, following the development of a falling wedge pattern with two dynamic trendlines acting as both resistance and support. 

However, the convergence nature of this pattern signals a reduction in bearish momentum and the ongoing downtrend approaching maturity. After encountering multiple rejections at the pattern’s upper boundary, the coin price successfully breached this barrier, recording a 10% intraday gain. 

This increase appears to be a ripple of the growth in USDT stablecoin after Terra Classic Lab acquired $25.6 million USTC, valued at approximately $500,000, as part of its treasury strategy, purchased at an average price of $0.021. 

At present, the LUNA price is trading at $0.83, and if the buyers maintain levels above the breached resistance, they could potentially continue the recovery rally as indicated by the channel pattern, targeting around $2.54, followed by $3.

Is this Recovery Sustainable?

Examining the daily timeframe chart reveals a long-wick rejection connected to the breakout candle, suggesting that buyers are encountering difficulties in sustaining these higher levels. Failure of the news-driven rally to maintain this breakout might nullify the previously mentioned bullish thesis, potentially resulting in a bull trap that could intensify selling pressure, causing the price to drop back to $0.55

• Average Directional Index: The ADX slope currently stands at 39%, indicating a potential exhaustion point that might support a minor pullback
• Super Trend indicator: A green film on the daily chart of this trend-defining indicator signifies a positive sentiment prevailing in the market.