(LUNA)’s market rally this week is at risk of running out of steam as price retests a key trend line for a potential pullback.
Descending channel puts LUNA at risk of a downturn LUNA has been trending down within a descending channel – made up of two parallel descending trend lines – since December 2021. In doing so, the Terra network token it typically tests the lower trend line as support for a bounce to the upper trend line, as shown in the chart below.
Daily chart of the pair with the descending channel pattern. Source: TradingView Similarly, a pullback from the upper trend line sends the price to the lower trend line. For the time being, LUNA looks poised to repeat the corrective move, benchmarked against its daily Relative Strength Index which is now approaching its overbought reading of 70, a sell indicator.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
