Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be taken as funding recommendation
LUNA appeared to be approaching an essential junction on its chart as a double backside fashioned at $33 had the potential to materialize right into a rally. A detailed above the 78.6% Fibonacci stage would put the bulls within the driving seat after which the next excessive could be anticipated.
Nevertheless, any cracks in shopping for strain would enable sellers to achieve the higher hand and set off additional retracements. On the time of writing, LUNA was buying and selling at $34.9, down by 5.5% over the past 24 hours.
LUNA 4-hour Chart
Supply: LUNA/USD, TradingView
A corrective section was lively at press time after LUNA climbed by over 77% on the again of a double backside fashioned round $25. With promoting strain coming to a halt on the 50% Fibonacci stage, LUNA had the potential for an additional double backside breakout. General, a 27% surge appeared doable, one which might see LUNA retest the 100% Fibonacci stage and kind the next excessive.
Nevertheless, LUNA would want to shut above the higher vary of its worth zone to comprehend its full potential. If shopping for strain just isn’t fixed over the approaching days, the 50% Fibonacci stage can be weak to a breakdown. Sellers would have the ability to capitalize on any strikes under $26.8 and a large shakedown will likely be doable under $25.
Reasoning
On the time of writing, the sellers had been edging out consumers within the LUNA market. The Relative Power Index always fashioned decrease peaks over the past seven days – An indication of weakening bullish strain. The Directional Motion Index steered {that a} downtrend was in impact because the -DI traded above the +DI.
Lastly, the Superior Oscillator prolonged under the half-line as momentum rested with sellers.
Now, the aforementioned indicators weren’t deep in bearish territory simply but and a right away reversal was nonetheless on the desk. The 50% Fibonacci stage could be anticipated to draw shopping for strain and assist overcome these bearish developments.
Conclusion
LUNA regarded poised to reverse trajectory on the 50% Fibonacci stage and ignite a run-up to the $41.5-mark. In an effort to obtain this consequence, it’s crucial for LUNA to shut above its worth zone of $27-$37.
If sellers reply on the 78.6% Fibonacci stage, count on a drawdown to the decrease finish of the aforementioned vary.
