- Luna’s breakout and golden crossover signal upside potential, but resistance at $0.69 is crucial.
- Market sentiment remains optimistic as Open Interest rises and bullish liquidations dominate.
Terra (LUNA) has caught the market’s attention by breaking out of its extended downtrend and forming a golden cross, a reliable bullish indicator.
At press time, Luna was trading at $0.7027, reflecting a 2.67% decline over the past day.
Although this slight decline has raised concerns, its technical and market parameters suggest the potential for a sustained rally if critical resistance levels are overcome.
Technical analysis: the golden cross signals potential
The golden cross, where the 50-day moving average exceeds the 200-day moving average, reinforced Luna’s bullish narrative. This formation often means strong upward momentum.
However, Luna is currently retesting the critical resistance level at $0.69, which represents a major hurdle.
A decisive breakout above this level could pave the way for further gains, while the opposite could lead to price stagnation or a reversal. Therefore, this resistance level is the key to Luna’s next move.
Source: TradingView
Luna social volume analysis: Slight drop in interest
Additionally, social volume decreased slightly from 38 to 33 over the past day. This drop reflects a slight cooling in online discussions and traders’ enthusiasm.
However, a strong price move or positive developments could quickly reignite interest. For now, the slight decline indicates that Luna needs sustained momentum to re-engage its community.
Source: Santiment
Open Interest: traders prepare for volatility
Futures open interest increased 1.07%, amounting to $18.94 million. This rise suggests increasing trader participation, signaling increased anticipation of price volatility.
Increasing open interest often precedes large market moves, highlighting that traders are actively positioning in response to Luna’s recent breakout.
Source: Coinglass
Total liquidations: bulls have the upper hand
Liquidation data further illustrates market sentiment. Shorts worth $1.25,000 were liquidated compared to $54.65,000 worth of longs in the last 24 hours.
This imbalance indicates that bullish traders are dominating the market, despite the slight decline in prices. Therefore, the liquidation trend supports optimism for further upward movement.
Source: Coinglass
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Conclusion: Is Luna ready for a sustained rally?
Luna is positioned for a potential rally, but its ability to maintain this momentum depends on breaking and remaining above the $0.69 resistance level.
However, slight declines in social volume and prices suggest caution is warranted. The coming days will determine whether she consolidates her breakthrough or faces new challenges.
