LUNA Bullish formations emerging. 2022 outlook.I have posted a LUNAUSD analysis earlier this month (Dec 02) but due to the latest market volatility, it is a good time to update it:
As you see that pattern above played out almost exactly as planned as the price initially broke out then pulled-back to the 1.0 Fib and rallied strongly above $100.00 up until the last few days. The obvious dominant pattern is the (green) Channel Up, which currently uses the 1D MA50 (blue trend-line) - 1D MA100 (green trend-line) zone as its Support. However I see the potential for a diverging Channel Up (black lines) if LUNA finds support around the current levels today or tomorrow. The main reason for this emergence is the 1D CCI indicator which being on a Double Top (red arrows) while supported on Higher Lows, resembles the diverging Channels of June - July 2021 and November - December 2020, both of which initiated strong rallies once the broke upwards.
As shown on the chart, Terra targets the +0.5 Fibonacci intervals and when it breaks them, it later tests them as Supports. The 1.5 Fib extension has already been tested as Support so the next target is technically the 2.0 Fib ext (roughly $148.00) followed by the 2.5 (roughly $373.00). My thesis is that it is not late to invest in LUNA.
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