LUNA potential-wise is a very strong coin. While BTC is struggling to reach its All-Time High, Luna is being traded at $90 which is very close to its All-Time High.
Checking out the Technical of LUNA and starting that off from the Daily Time Frame. As mentioned before it’s being traded near to the previous All-Time High and that itself has a Supply zone, because once ATH was formed price broke the structure to the downside which left an Order Block where the price is right now. Supply Zones tend to induce sellers within the market, being the reason the price has been rejected very strongly. Now it should be kept in mind that at the moment, the Momentum is very strong, so LTF confluences are very important. Structure wise it’s bearish and the Supply Zone can induce sellers again
Moving down to the Daily Time Frame to look out for more evidence of which price leaves behind. On Daily, the refined Order Block clearly shows that it has become a resistance for the price to move upside. This has resulted in a consolidation in the price which shows no signifying directional bias for the price. But there are some other confluences as well which Daily is showing. It can be observed that price made a Pole Flag Pattern and an ABCD harmonic pattern which both seems to have been completed and as that end is within the Supply Zone, a possible good short position can be taken. Now talking about the Premium/Discount areas, the price is clearly with the Premium pricing in which it is just ideal to short and avoid any longs because If one violates that, he is violating the most basic rule of Financial Markets which is to BUY LOW & SELL HIGH.
Nothing more on the Daily Time Frame so moving down to the 4 Hour Time Frame, it can be seen that the consolidation on the Daily is more like a Wyckoff Distribution Schematic. Although structure-wise, the price hasn’t broken any structure to the downside. So unless price doesn’t break any downside structure, there shouldn’t be any short entries if being conservative.
Talking about the invalidation point. If the level of $97.29 gets violated by the price, this whole scenario would be violated. About the target, the level of 63.80 shall be considered a good one because the level of $70 may act as an inducement area.
