Ever since breaking into new ATHs, the LUNA price has been surging higher in an Ascending Channel Pattern in the 4-hour timeframe.
This pattern offers us key levels to watch for and targets to aim for in this bullish rally. And right now the LUNA price is testing one of these key levels.
The question now is can this resistance channel hold and should we be expecting a price sell-off back down in the coming days?
In this LUNA/USDT price analysis, we will be breaking down exactly what we are watching on the LUNA 4-hour timeframe, the key pattern playing out right now as well as the levels to keep an eye on in the coming days.
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LUNA Trading At Key Resistance
The LUNA price is currently trading at a key resistance level in the 4-hour timeframe. This key channel has served as price resistance on two previous occasions in the past and might do so again in the coming days.
If this channel resistance holds strong in the 4-hour timeframe, there is a very high probability that we might see the LUNA price crash back down to the previous ATHs region of $101.151 before finding any major support.
A crash like this is a -10% drop in the value of LUNA but in no way signifies the end of the LUNA bull run.
The LUNA bullish rally is currently playing out in an Ascending Channel Pattern in the 4-hour timeframe. This pattern plays a key role for us as traders because it helps us understand exactly what the LUNA price is doing and the key levels to watch out for.
As far as LUNA continues to trade in this Ascending Channel Pattern, there is a very high probability that we might see the Altcoin continue to rally higher in the long term.
This pullback we are experiencing is just a price bounce within this Ascending Channel pattern and once it is over, we expect to see the Altcoin price resume its uptrend.
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