In our previous LUNA analysis, 80% Chance LUNA Could Head Lower Soon! Here Is Why we warned our readers of the LUNA bull trap that was playing out on the 1-hour timeframe and how there was a higher probability for us to see price reverse and head lower in the coming days.
Well as we speak, that bearish prediction is playing out exactly! Right now we have seen the 1st phase of the price sell-off completed with the LUNA price currently testing the $85 minor support on the 1-hour timeframe before continuing lower.
Once this minor support gives way, we can expect to see the 2nd phase of the LUNA sell-off get on the way. This second phase would likely push the Altcoin price back down to the $75 key support in the coming days.
In this LUNA analysis, we will be breaking down the Descending Channel Pattern currently forming at this minor support region and what it might mean for the LUNA price in the coming days.
To trade the LUNA/USDT pair with leverage, sign-up to Bybit right now! Bybit’s BIGGEST Deposit Bonus Campaign is now live! First-time depositors can get up to a $4,100 Bonus when you sign-up and fund your Bybit account with our Bybit link.
Claim up to $30,030 in Bonus
LUNA Descending Channel Pattern
The LUNA price sell-off is playing out in a structural manner, and this has led to the creation of a Descending Channel Pattern on the 1-hour timeframe.
This pattern offers us key levels to watch for and a price structure we can properly see and follow as the Altcoin continues to descend lower.
Right now, the LUNA price is trading at the resistance channel of the pattern and might begin to sell off soon. If this bearish prediction plays out exactly, this would further confirm the Descending Channel Pattern and help us better predict the next price movement for LUNA as time goes on.
What To Expect Next?
We expect to see a price sell-off sooner or later, but the key level we are watching for this bearish prediction to play out is the $85 minor support region on the 1-hour timeframe.
This minor support needs to give way for this bearish move down to begin on LUNA. Once broken we can expect to see about a -10% sell-off in the coming days.
This move down would push the prices back to the base of the Descending Channel Pattern and back to the $75 key support region, we have been talking about.
NOTE: For this bearish prediction to play out, the $85 minor support must get broken first. Until this minor support gives way, we will stand aside and wait.
Claim up to $30,030 in Bonus
Easy Steps From Beginner To Pro Crypto Trader
You can speed up your learning journey by reading our How To Trade Bitcoin Guide. This guide is the best for crypto traders who wants to get familiar with the basics of Bitcoin trading. You can also check out our top list of Best Bitcoin Exchanges To Trade With.
PrimeXBT Covesting: Trade Hassel Free
Sign-up on PrimeXBT today to trade Bitcoin hassle-free. You can copy experienced traders and access hundreds of different strategies on the platform! Don’t forget to claim your 25% bonus by using the promo code “bitcoinsensus50” when you sign-up with our link PrimeXBT Covesting