The findings of the following analysis are the sole opinions of the writer and should not be considered investment advice.UST stablecoin and LUNA fueled the market-wide crumble in May, a plunge that the investors are still recovering from. However,
The native token of Terra’s blockchain registered an over 200% ROI over the last two days. Even so, the coin was still down by 67.5% from its ATH, at the time of writing. After testing this hurdle twice, the third test resulted in a breakout rally that put LUNA in price discovery. The altcoin witnessed a solid bullish engulfing candlestick on 9 September, one that aided the bulls in fixating a spot beyond the north-looking 20/50/200 EMA.
On the contrary, an immediate close below the pattern would hint at a near-term decline towards the $4.8-zone before a plausible revival.The heightened bullish pressure has kept the Relative Strength Index in an overbought position. A gradual reversal from its record highs seemed likely in the coming sessions. Traders should wait for a decline below the 70-level support to confirm this bias.