In recent weeks, popular cryptocurrency LUNA had been moving within a relatively corrective downward trend, and the outlook toward the end of the year appeared similarly restrained. The dynamic shifted abruptly on December 5, when LUNA’s price accelerated by more than 120%. Is it time to enter the market after such a strong impulse?

Luna technical analysis

LUNAUSD - 4 Hour Time Frame

After the initial surge, the price corrected below the 0.5 Fibonacci retracement of the preceding impulsive move—an important boundary separating the Premium and Discount zones, measured from the internal peak formed on December 6. At that point, confirmation of a completed correction was still lacking, meaning any early long exposure would have carried elevated risk.

A stronger confirmation emerged on December 9, when the price closed above the first bearish correction candle on the 4-hour timeframe, indicating a potential shift in price delivery. The corrective decline also formed a zone that later flipped into support once the breakout occurred, adding further structural validity to the move.

Luna price target

LUNAUSD - 1 Day Time Frame

With these elements in place, the entry setup can now be viewed as structurally completed. A protective Stop Loss could be placed below the internal swing low, as indicated on the chart.

Identifying areas where profit-taking could occur is equally important. On the chart, these regions are marked as Buy-Side Liquidity levels. Such levels often act as magnets during bullish continuation phases and can serve as logical zones for partial or full position exits.