A reading on currency $LUNA

LUNA needs significant growth in decentralized applications to justify the weekly price increase of 51%. The failure to attract developers may reignite selling waves.

3. Technical and on-chain signals (positive in the short term)

Overview: The MACD indicator (+0.0127) and the Relative Strength Index (RSI) (72.45) show bullish momentum for LUNA, with a potential breakout of the descending wedge pattern that has lasted for 4 months, targeting levels between $0.20 and $0.31 (CryptoNewsLand).

What this means: Traders may try to capitalize on these technical signals, but the price must maintain the 30-day simple moving average at $0.0906 to avoid a 40% correction down to support at $0.11.

Conclusion

The path of LUNA depends on whether the optimism from the technical updates will outweigh ongoing legal risks. While technical indicators suggest a potential price increase towards $0.20, the 15-year prison sentence and Terra's $1.3 billion settlement (Yahoo Finance) pose a significant barrier. Monitor the Fibonacci retracement level at $0.15 – a sustained break below may open the way for testing the highs of 2025, but regulatory news remains an uncertain factor. Can Terra overcome its past as an algorithmic stablecoin to regain developers' trust?