Is LUNA’s Price Recovery Just a Dream? 🤔💸

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Ah, Terra [LUNA], that elusive creature of the market! Like a wayward traveler, it experienced a rather dramatic 20.1% tumble starting on Monday, only to find itself in the calm embrace of $0.127 by Tuesday’s dawn. Since then, its antics have been rather comical, bouncing between $0.127 and $0.135, with a current position at $0.13-if one can call that a position.

In a recent proclamation, AMBCrypto suggested that LUNA presented a splendid opportunity for buyers, defending the $0.15-$0.16 threshold like a valiant knight. Alas, those bullish hopes were dashed upon the rocky shores of reality, as our dear token took a nosedive once more.

What do the stars say for LUNA’s next escapade?

The three-day chart, a veritable oracle, reveals a bullish structure-or so it seems. Yet, the long-term trend has been as gloomy as a winter’s day since May 2022. Occasionally, LUNA’s price action would tease us with a breakout, only to vanish like a mirage in the desert.

Perhaps we shall never bask in the glory of $80 or $100 again after the great Terra crash. But fear not, for traders find joy in the fleeting moments, profiting from the whimsical dance of short-term trends!

The move beyond the $0.168 local high from mid-September hinted at a bullish market structure. Oh, the tantalizing prospect of a rally towards previous heights! The OBV’s spirited upward thrust, accompanied by the volume bars of December, seemed to whisper promises of increased trading fervor.

However, the four-hour chart tells a different tale. Here, LUNA bulls cling desperately to the 78.6% Fibonacci retracement level at $0.13, as if it were a lifebuoy in a tempest. Alas, the bears have claimed dominion over the lower timeframe demand zone of $0.15-$0.18 after Monday’s chaotic escapade.

These developments paint a rather dismal picture of increasing bearish pressure. Indeed, the four-hour structure appears as gloomy as a Russian winter.

Which path is LUNA less likely to stumble upon?

Given the structure on the 1-day and 3-day timeframes, one might argue that clinging to a bullish bias is sensible. Should LUNA manage to rise above key support levels like $0.155, perhaps it could reclaim some of its lost glory from last week.

But let us not forget the plight of Bitcoin [BTC], whose bearish trend is akin to a wet blanket on an otherwise festive occasion. A breakout past $94k is crucial for a glimmer of hope. Until then, the dream of LUNA recovering to $0.2 and $0.24 remains more fantasy than reality.

Traders’ call to arms: Is it time to don the bear suit for LUNA?

In summary, the answer leans toward yes. LUNA has pulled off bullish breakouts before-on both the 1-day and 3-day timeframes-only to be thwarted in its quest for stability. The most recent bullish shift was buoyed by heightened trading volume, yet traders are advised to tread cautiously.

Those considering a short position may wish to linger a few days longer, observing whether our token can defend the precarious $0.13 and reclaim the former support of $0.155.

Final Thoughts

  • The previously held bullish expectations for LUNA were dashed when it failed to uphold the $0.155 demand zone. Such is life!
  • With Bitcoin’s ongoing struggle and the Terra token bulls proving less than reliable, it seems more LUNA drawdown is on the horizon. An unfortunate state of affairs!

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2025-12-17 11:13