Terra's native token, LUNA, rallied almost 63% from its February 20 low and based on the Elliott Wave analysis, LUNA's price can extend higher. Short-term prices have also rejected the critical 200-day simple moving average, which currently stands at $52.02.
LUNA Elliott Wave Analysis
The bullish case scenario is favored by the current price structure.
Starting from the December 27, 2021, all-time high, LUNA's price developed a flat pattern, which unfolds as a 3-3-5 price structure.
Flats are corrective in nature, which is why we can see the rally from the $43.43 low unfolding as an impulsive price structure in the short term.
From January 31, low wave I ended at the $60.61 high, and the correction in wave II ended at the $47.30 low. We're currently in the process of developing wave III, which is the most substantial wave so far, confirming the impulsive nature of the whole price structure.
Additionally, the Relative Strength Index (RSI) oscillator also signals the return of the positive momentum.
The RSI oscillator broke above the 50 mid-level for the first time since the LUNA price started sliding.
Moving forward: As we stay above $60.61, we should expect a pullback in wave IV followed by another leg higher to complete the five-wave price structure.
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