Terra (LUNA) has verified it corrective structure by bouncing on Jan 31 – but is it possible that this could be the catalyst for a considerable relief rally?

LUNA has been decreasing afterward touching an all-time strong rate of $103.60 on Dec 27. The descending shift has been contained within a lowering equivalent channel. 

On January 31, the cryptocurrency hopped at the support line of the channel (green icon), legitating the structure in the process. In addition to this, it created a bullish engulfing candlestick.

After all, LUNA has yet to create a excessiveer low, that would indicate that an skyward developmentment is reasonable. Measuring from the all-time high, it has so far decreased by 52%.

LUNA Channel
Chart By TradingView

Short-term change

Cryptocurrency trader @TheEuroSniper tweeted a chart of LUNA, stating that the cryptocurrency could increase all the way to $54.

LUNA Movement
Source: Twitter

The two-hour chart shows that LUNA has bouncet at the 0.618 Fib retracement support level (white) after briefly deviating atop it. It is now approaching a tumbling resistance line that has been retained afterward January 23.

In fact that it manages to break out, the next closest resistance range would be at $54. This is the 0.382 Fib retracement resistance level and a horizontal resistance range, ascending its significance.

LUNA Resistance
Chart By TradingView

LUNA wave count analysis

The most possible wave count indicates that LUNA has finished wave three of a five wave skyward developmentment (white) that began on Jan 2021. Therefore, it is inclined in wave four, that is corrective. 

There are several possibilities as to the sub-wave count that would complete wave four, the most reasonable being a flat (black) or a triangle (red correction). 

While it is not yet certain that will transpire, both indicate which a considerable leap will occur prior to another fall that would complete the correction.

LUNA Count
Chart By TradingView

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