Terra (LUNA) – Forming a bullish engulfing pattern reviving hopes for short-term progressPosted on Tuesday, February 1 2022 at 9:33 pm GMT+0000
The November inside high, along with the 200-day SMA and the 61.8% Fibonacci retracement level of the May-December rally, concerted efforts and pushed Terra’s (LUNA) price remarkably higher, drawing a bullish engulfing pattern on the daily chart that usually foresees a buoyant trading in the forthcoming sessions.
Additionally, the technical indicators are also increasing the odds of an upturn. The stochastic %K line has rebounded off the 20 oversold level and over the %D line and the ROC is ramping up beyond its signal line to meet the zero mark. Furthermore, the latter moved against the market direction since the beginning of January, broadcasting a bullish divergence.
As things stand, buyers are expected to push further efforts to crawl the price higher and snap the 23.6% Fibonacci retracement level of the last month drop at 58.08. If their efforts prove successful, they will eye the 38.2% Fibonacci level at 67.32,before targeting the descending trendline stretched from the ATH.
Otherwise, if sellers regain command, they would face initial downside limitations from the 200-day SMA around 45.85 and the 61.8% Fibonacci level at 43.13. If this floor collapses, bears will likely aim for the late November low at 38.50.
In brief, Terra could not stage an impressive start to 2022, but hopes for progress revived following the recent formation of a bullish engulfing pattern. A sustainable move above 58.08 will likely trigger a stronger bull run.