Terra 2.0 (LUNA) Pumps 260% as Terra Classic (LUNC) Falls
Terra 2.0 Luna is on a rampage today as it soars up to almost $8 increasing in price by over 250% in the last 6 hours.
Whilst Terra Luna achieves euphoric highs Terra Luna Classic is facing a bearish reversal down to $0.00044 from recent highs of $0.000593.
Is the Terra 2.0 Luna pump deleterious for LUNC and will Terra Luna climb higher?
Terra 2.0 Luna Price Prediction
Over the last few days altcoins have displayed bullish price momentum and volatile behavior. But today, Terra 2.0 Luna has claimed the throne for probably being the most volatile.
From a technical analysis perspective Terra Luna looks extremely bullish as it breaks out of the macro descending channel.
If positive price momentum is maintained there is a chance that Terra Luna might be able to retest the day one all time high from May 31st (launch day) just like Luna Classic (LUNC) recently did.
This means with enough bullish momentum Terra Luna may be able to retest and break through the $11.86 price level.
Terra Luna broke through a key resistance level of $2.82 which allowed it to rocket through multiple resistance levels which have been flipped into support.
Earlier today Terra Luna surged to $7.80 before losing steam and getting rejected. Currently Terra Luna is trading at $5.99.
Analyzing the price action of Terra Luna on a smaller time frame we can see that there is an imposed risk that we may lose the $5.72 support level of a descending triangle pattern. Typically, this is a bearish continuation pattern.
If we lose this key area of support we could see continuation back down to the $4.72 support level at the beginning of the bull pennant.
The bullish scenario for Terra Luna is that we break through the $6.03 resistance trendline and potentially retest the $7.80 price levels where it could then be possible for Terra Luna to surpass $10 once again.
It is worth noting that Terra Luna is extremely over extended on the 20-day moving average, the relative strength index also reached 99.87 on the 5-minute time frame which reflects it is extremely overbought – stay risk averse.
Terra 2.0 Luna Video Analysis
Terra Luna Classic lost support from its symmetrical triangle as displayed by the image above. LUNC has bounced over 25% already from today’s swing low, which reflects the bulls are fighting back and there is a lot of buying pressure around these lower price levels. Some may even call it dollar cost averaging.
Much of the Terra Luna Classic pump is coming from the heavily awaited 1.2% tax burn which will remove 1.2% of the supply per transaction.
BREAKING!@MEXC_Global IS DOING AN ADDITIONAL $LUNC BURN!!!!— Levi (@LeviRietveld) September 7, 2022
If you sign up to MEXC and trade #LUNC they will burn additional #lunaclassic using their exchange fees!
SUPPORT MEXC AND #TerraClassic by signing up and depositing your luna here: https://t.co/yUaXwDwZCE pic.twitter.com/GUFtpRT51p
Crypto analyst @CryptoKing had been recently talking about the MEXC exchange encouraging further transactions and volume which has a positive impact on the total supply and price of Terra Luna Classic (LUNC).
Many other centralized exchanges are looking to deploy the 1.2% supply burning mechanics.
Furthermore, it is vital that Terra Luna Classic (LUNC) repossesses the $0.000489 price level if it wishes to seek further continuation to the upside. This is a resistance level which could be a challenge for the Luna Classic bulls.