Altcoins

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 stable run on the charts in latest 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 value 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?

LUNA- 1HLUNA at a short-term supply zone, could it be headed back to the range lows?

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 stage at $90 (white dotted). This stage has acted as help and resistance persistently for the previous week.

The worth motion indicated that on 14 March, a check of the vary highs was adopted by a bearish engulfing candle. This was indicative of a bearish order block on the vary highs (crimson field) and a zone the place sellers are more likely to be robust as soon as extra.

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A rejection right here would doubtless see LUNA head again in direction of the vary lows looking for liquidity.

Rationale

LUNA at a short-term supply zone, could it be headed back to the range lows?

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Supply: LUNA/USDT on TradingView

The indications additionally appeared to favor a transfer to the draw back. The RSI, although it confirmed robust bullish momentum, set equal highs whereas the value made greater highs. This pointed in direction of the likelihood that momentum has run out of steam at the same time as the value 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 doubtless.

Conclusion

The indications underlined the potential 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 path of the subsequent transfer for the altcoin.

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