Why will the LUNA Prize reward patient traders, and how can you be one of them?

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  • LUNA’s price has fallen 23% since July 20, indicating more losses around the corner.
  • Investors can expect at least another 12% decline this week as the bears take control.
  • A daily candlestick close below $1.46 without a quick recovery will invalidate the chances of a recovery.

LUNA price shows that it is ready to repeat the fractal that was spotted almost two weeks ago. If such a development occurs, investors should be aware that further corrections are on the horizon.

LUNA price needs to exhaust liquidity on the downside

The LUNA price produced a fractal that had two parts; the first leg was a liquidity run below a previously formed swing low, and the second leg was a rally.

The June 8 low at $1.94 was swept away as the price of LUNA fell below on June 18 to collect liquidity. This was followed by a buildup of bullish momentum that sent the altcoin up 73% over the next week or so.

This rally was exhausted after the altcoin created a double top.

The second time this pattern was repeated was on July 13, when the price of LUNA fell below the June 18 low at $1.60. After this liquidity run, the altcoin triggered another surge that pushed Terra up 50%.

Interestingly, this rally also faced exhaustion after producing a double top at $2.20.

Since creating a local high, the price of LUNA has fallen 25% to its current level of $1.64. If the fractal is still in play, Terra is likely to drop at least 12% before sweeping the July 13 low at $1.46. This development, according to the fractal, should trigger a bullish move.

In such a case, market participants can expect a 32% move to $1.94.

LUNA/USDT 4-Hour Chart

While things look bearish in the short term, LUNA price is positioning itself for a bullish move. If the sweep from the July 13 low at $1.46 fails to recover quickly, it will invalidate the fractal.

In such an event, the price of LUNA could crash to the psychological level of $1 before attempting another recovery rally.

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