A look at LUNA\u2019s price, at press time, indicated that a short-term pullback would be necessary before a massive leg-up. This fact can be supported by technical and on-chain metrics and will serve as an opportunity for sidelined buyers to accumulate LUNA.<\/span><\/p>\n The altcoin\u2019s price set up a range, extending from $43.34 to $87.92 as it crashed by roughly 50% between 15 and 22 January. After establishing a stable base, LUNA rallied by 74% and pierced the four-hour demand zone, stretching from $75.57 to $79.40. Due to the blockade, the alt\u2019s price set a swing high of $79.52.\u00a0<\/span><\/p>\n Interestingly, between 15 January and 26 February, LUNA set up lower highs while the Relative Strength Index (RSI) created a higher high. This setup is a bearish divergence and forecasts that a retracement is likely. Due to the blockade and the bearish divergence, the resulting price action will be a retracement that drags LUNA down to another stable support level.\u00a0<\/span><\/p>\n The contenders of such a barrier include the 50% retracement level at $65.63 and the 70.5% retracement level at $56.49.\u00a0 Although the crypto might slide lower, the bullish thesis will stay intact as long as the altcoin stays with the formed range.\u00a0<\/span><\/p>\n A reversal at the levels mentioned above will lead to a strong uptrend, one that slices through the said demand zone and tag the range high at $87.92.<\/span><\/p>\n Source: LUNA\/USDT on TradingView<\/p>\n<\/div>\n Supporting the short-term retracement is the recent decline in the funding rate of Terra from 0.01% to -0.04%. This sudden dip indicates that investors are booking profits and that the majority of the traders are betting for a retracement.<\/span><\/p>\n Source: Santiment<\/p>\n<\/div>\n While the short-term outlook might seem bearish, it is an opportunity for sidelined buyers to accumulate since the overall trend is still bullish. Implying a similar outlook for the altcoin is the recent spike in on-chain volume from 881.73 million to 6.14 billion from 19 to 24 February. This massive upsurge has pushed way past the 200-day moving average, indicating that high net worth investors are interested in LUNA at the current price levels.<\/span><\/p>\nA perfect concoction of technicals and on-chain metrics<\/strong><\/h4>\n
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<\/a><\/p>\nHere\u2019s the support system<\/h4>\n
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