- The RSI shows a significant bearish divergence concerning the LUNA coin price
- The LUNA/BTC pair trading at 0.0008148 BTC, with a loss of 4.28%,
- The 24 hr volume of LUNA coins are $1.55 Billion
As mentioned in my previous article on Terra, the coin price continued with its uptrend after the coin gave a double bottom pattern breakout from the $40 mark. However, even though the price could break out from the previous high or the ATH of $44.5, the coin soon found another strong resistance at $48.5, trying to stop this rally.
Concerning the EMAs, the LUNA price has a solid bullish alignment, where the price is trading higher than all the crucial EMA’s (20, 50, 100, and 200).
The RSI value (BULLISH) is at 58, indicating a bullish sentiment within the LUNA coin. However, the RSI shows a bearish divergence concerning the coin’s price action, projecting weakness among the market buyers.
The LUNA Coin Chart Displays A Double Top Pattern
The LUNA coin shows the formation of a double top pattern in the 4hr time frame chart. The neckline for this pattern is at the $40 mark, holding a quick short opportunity for Crypto traders when the coin price offers a proper breakdown from this level.
Moreover, the crypto traders can use the traditional pivot level in their chart as they are remarkably coinciding with the significant SR levels of this chart, providing an excellent confirmation for these traders.
The moving average convergence/divergence (MACD) indicator shows the MACD and signal lines have just moved above the neutral zone (0.00), indicating the bullish sentiment in the coin. However, these lines have offered a bearish crossover and are moving towards the middle area; if they also manage to cross below this zone, the LUNA trader will obtain an excellent confirmation for the bearish pattern.
Conclusion: The LUNA coin indicates an overall bullish trend. The current price action reveals a bearish opportunity for the crypto trader. Thus, with the breakdown of its double bottom pattern, this coin can provide a quick short trade for these traders, with the first target to the $35 mark.
Support: $40
Resistance $48.4