- LUNA tests confluence resistance at $0.1555 amid a broader downtrend within a descending channel on the 4H chart.
- A breakout above EMA and SMA zones may signal short-term reversal; failure risks drop toward $0.135 channel support.
- Market awaits price confirmation as current resistance test will shape LUNA’s near-term direction and trading setup.
LUNA is nearing a critical resistance level at $0.1555, where the descending channel’s upper trendline aligns with key averages. This confluence zone is expected to dictate LUNA’s next price movement as traders await directional confirmation.
LUNA Tests Key Resistance Amid Bearish Channel Pattern
LUNA makes its trading in a downward elongating channel, and the price is still observing both upper and lower lines. Lower highs and lower lows have a defined structure on the 4-hour time frame indicating the presence of short-term control on the bear side.
As of this writing LUNA is traded at 0.1553 by 0.39 percent daily growth, whereas it is still down by 5.70 percent on a weekly basis. The price is currently testing the upper boundary of the descending channel, where confluence resistance has formed.
The confluence includes the 9-period EMA at $0.1550 and the 50-period SMA at $0.1585. These indicators are acting as strong dynamic resistance near the trendline. Market participants see this zone as decisive for short-term market direction.
Breakout Above $0.1585 Could Shift Market Structure
Should LUNA climb out of the $0.1585 resistance point with a good volume, then a short term trend reversal may be in progress. This would create a room, of a possible rally up to the $0.165 to 0.175 area.
Confirmation of the breakout would require bullish candles closing above the channel and increased volume. This scenario would attract buyers seeking to capitalize on a break of the bearish structure.
But denial at the present level would confirm the down-trend which has been observed. At that, LUNA may retest the mid-channel support at the levels of $0.145 and possibly drift towards the lower edge at about $0.135
Traders Await Confirmation as Direction Remains Unclear
A tweet by @AlphaCryptoSign emphasized the importance of this price level. The account noted that the next few candles will be key for the market’s decision.
Whether the price breaks above or gets rejected will determine trading sentiment. Without confirmation, positioning in either direction remains speculative and carries increased risk.
Short-term traders and swing traders are advised to monitor volume activity and candle structure closely before committing. The descending channel remains valid until price action confirms otherwise.
