LUNA shows a sharp recovery from deep losses as traders watch heavy resistance zones and a dominant trendline that continues shaping long-term direction.
Short-term charts reveal strong momentum above $0.20, with consolidation forming under key resistance where buyers and sellers compete for short-range control.
Momentum indicators display aligned moving averages and elevated strength after a rapid rise, signaling a shift toward early stability following extended weakness.
LUNA shows a sharp rebound after months of declines. Traders now track key resistance levels. The market also watches the long-term trendline that continues to shape price direction.
Prolonged Downtrend Meets Sudden Recovery
The focus shifted after analyst Crypto Patel noted that LUNA faced a prolonged slide before recording a sharp rebound. His assessment pointed to a drop of more than 99% before a move from $0.06415 to $0.23 within three weeks.
He added that a major descending trendline continues to act as a dominant structural barrier, preventing any confirmed shift in long-term direction.Recent weekly data shows repeated rejections at this trendline, as each lower high reinforced selling pressure.
https://twitter.com/CryptoPatel/status/1998958419538256259?s=20
Horizontal resistance between $0.30 and $0.38 remains a challenge, and traders are watching these zones for signs of renewed supply. The latest reaction from the $0.03–$0.04 support area suggests accumulation after an extended decline, although the broader trend is still downward.
Patel noted that the market structure will only turn constructive if price closes above this multi-year trendline. Until then, the rebound may remain speculative despite the strong percentage gain recorded this month.
Short-Term Momentum Builds but Raises Risk Concerns
Market watcher Alastar described the recent surge as a steep move that complicates long and short positions. He argued that the structure resembles a pump-and-dump pattern, adding that funding on the one-hour interval is negative, which makes short exposure difficult to maintain.
https://twitter.com/AlastarTrades/status/1999029927618687245?s=20
He also warned that entering during a late-stage rally exposes traders to increased volatility.Four-hour chart observations show a clear shift above $0.20, which has turned into immediate support.
Price is consolidating below $0.25041 after an earlier wick rejection, suggesting that sellers are defending the level. The next zone at $0.30041 remains the key area where liquidity could gather if bullish pressure resumes.
A move back below $0.20 may potentially open the way toward previous support layers. The current structure still leans bullish yet the steep rise increases the likelihood of sharper corrections.
Technical Indicators Reflect Strong Momentum but Overextension
LUNA is pushing from the $0.03–$0.04 base to above $0.24, the MA(7) crossed above the MA(30) and MA(200), signaling a short-term shift in direction. Price is trading well above these moving averages with strength yet extended in positioning.
Breaking above the 200-day moving average marks a change toward a neutral or early upward phase. However, the current distance from the shorter averages suggests the market may be stretched. The recent wick near $0.24662 shows that sellers reacted as the upward momentum paused.
The RSI near 82 indicates strong buying pressure, often followed by cooling periods as traders reassess. A return to the MA(7) or MA(30) zones may be viewed as a natural development after such an accelerated rally.
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