LUNA 8H and Daily timeframe analysis

28 Dis 2023

LUNAUSDT

As of 28th December 2023, LUNA has violated the local range support and the trendline held snce early November, currently trading at around 0.89 USDT.

Although there has been an breakout and retest of the trendline and previous support turned resistance indicating further downsides, the price is currently testing the support around 0.835 and the upper boundary of the old pennant. We have conficting infomation indicating both to the downside and the upside, so we cannot be sure.

Personally I would not enter any trades right now until the confimed breakdown of the support level or the breakout above the 1.03 resistance.

If the bearish scenario happens, the targets are 0.55 and 0.435 respectively.

If the opposite happens and the price manage to break above 1.03, the targets are 1.28 and 1.647, the peak of April 2023.

Daily timeframe:

Following the Elliott wave theory, we have just finished the fourth wave which is the correction wave, now the next wave would be an impulse wave, leading me to believe this is slightly bullish.

Furthermore, it seems like the market is creating an huge cup and handle pattern, which will be created if the price manages to hit 1.647.

But without confirmation, I will not entry, this is only speculative.

Goodluck trading!