Disclaimer: The findings of this evaluation are the only opinions of the author and shouldn’t be thought-about funding recommendation
LUNA has been on hearth over the previous couple of days because it rocketed from $48 to $57, on the time of writing, backed by regular demand. In truth, it has been one of many few large-cap altcoins to carry out fairly effectively after Bitcoin bounced from the $36.4k degree.
In different information, the Terra blockchain infused $450 million value of UST into the Anchor Yield reserve, extending reserves for the following 12 months.
LUNA- 1 hour chart
Supply: LUNA/USDT on TradingView
Primarily based on LUNA’s transfer from $43.47 to $60.64 in early February, a set of Fibonacci retracement ranges had been plotted (yellow). Prior to now few days, the value slipped beneath the 61.8% retracement degree at $50. The $49-$50 space (cyan) is a spot the place demand has stepped in.
Nonetheless, shortly after slipping underneath $48, the bulls rallied and flipped this space again into an space of demand, forming a bullish order block on this space. This noticed LUNA check this space and transfer increased, shortly, pushed by demand.
The day previous to press time additionally noticed the $53-area flipped from provide to demand and LUNA’s short-term market construction was bullish as soon as extra. The $57.87 resistance may very well be a spot to take income on lengthy positions, not less than partially.
A retest of the $56.6 and $54-support ranges may very well be shopping for alternatives.
Rationale
Supply: LUNA/USDT on TradingView
The RSI climbed above impartial 50. It was rejected on the 65-level on three events inside simply the previous couple of days. Nonetheless, on the time of writing, the RSI broke above and entered the overbought territory. This doesn’t point out an imminent pullback by itself however is barely proof of robust bullish momentum.
Equally, the MACD additionally shaped a bullish crossover and soared above the zero line to point out upside momentum.
The OBV has additionally been climbing over the previous couple of days. This confirmed there was professional demand behind LUNA’s transfer upward from the $48-area.
Conclusion
LUNA gave the impression to be strongly bullish on the charts within the close to time period and the $56.6 and $54.5-levels may very well be retested as help earlier than the following leg north. The $57.87-level can be utilized to take partial income.
If demand strengthens within the subsequent few days, LUNA won’t pull again as deep because the $54-level.
