Assessing LUNA bulls’ leverage to push past this order block
Disclaimer: The findings of the next evaluation are the only real opinions of the author and shouldn’t be thought-about funding recommendation
Terra has had a strong run on the charts in current weeks. In early March, news emerged that $30 billion value of LUNA was staked throughout varied platforms, in comparison with Ether at $27 billion. This coincided with a powerful rally on the charts, backed by real demand.
Over the previous few days, this bullish impetus has misplaced some steam and the worth has been buying and selling inside a spread. Is a breakout imminent or are the bears sharpening their weapons for fight as soon as extra?
In white is a spread from $85.1 to $94.8, one which LUNA has traded inside for probably the most a part of the previous week. This vary, regardless of the deviation to $83, holds significance due to the significance of the mid-range degree at $90 (white dotted). This degree has acted as help and resistance constantly for the previous week.
The worth motion indicated that on 14 March, a take a look at of the vary highs was adopted by a bearish engulfing candle. This was indicative of a bearish order block on the vary highs (pink field) and a zone the place sellers are more likely to be robust as soon as extra.
A rejection right here would probably see LUNA head again in direction of the vary lows in the hunt for liquidity.
The symptoms additionally appeared to favor a transfer to the draw back. The RSI, regardless that it confirmed robust bullish momentum, set equal highs whereas the worth made greater highs. This pointed in direction of the likelihood that momentum has run out of steam at the same time as the worth pushed greater.
The Stochastic RSI shaped a bearish crossover within the overbought territory whereas the OBV has not registered a brand new excessive up to now week.
This might all change within the subsequent few hours if LUNA can break previous the $94.5 zone and retest it as demand. Nonetheless, as issues stood at press time, a transfer again in direction of $90 and $85 appeared probably.
The symptoms underlined the opportunity of a transfer in direction of its vary lows for LUNA. The worth motion confirmed a transparent order block at $94, one that might resolve the course of the subsequent transfer for the altcoin.