LUNA Price Challenges 0.50% Fibonacci Retracement Near $0.80; Hold or Exit?

LUNA price remains muted on Friday as the sellers seem exhausted with the day before of sell-off. The current price action suggests a lack of volatility. However, the possibility of further downside momentum is having a better chance as the price continues to trade near the lower levels.

• LUNA price trades in a lukewarm state following the massive previous-day decline.
• Expect more downside if breaks below the 0.50% Fibonacci retracement level near $0.80.
• However, a daily candlestick above $0.85 would invalidate the bullish thesis.

LUNA price set to fall further

On the daily chart, the LUNA price is coiling near a crucial support level as the token continues to trade in a downswing since April 5. Further, the price sliced the 50-day EMA (Exponential Moving Average) at $91.04 on April 11, confirming the recent downward momentum.

The current technical set-up suggests the LUNA buyers are taking a backseat now, and the price could further witness a descent of 8% from the current levels.

Currently, the LUNA price is taking support around the 0.50% Fibonacci retracement level at $0.80. A resurgence of the sellers here could lead to a drop that will propel the horizontal support line placed at $0.75, falling below the critical moving average of 200-EMA at $$89.99.

On the contrary, a daily candlestick above $0.85 will indicate a bullish undercurrent. In such a scenario, the first upside target could be found at the highs of April 11 at $92.13.

Still, the sellers have the upper hand as a failure to produce a daily candlestick above the threshold would ruin the optimistic outlook on the price.

As of press time, LUNA/USD trades at $81.86, up 0.32% for the day.

Technical indicator:

RSI: The daily relative strength index is still above the oversold zone. Any downtick in the indicator would advocate for the bearish momentum.

Rekha has started as Forex market analyst. Analyzing fundamental news and its impact on the market movement. Later on, develop an interest in the fascinating world of cryptocurrency. Tracking the market using technical aspects. Exploring on-chain analysis to track the market.