• Luna’s breakout and golden cross signal potential bullish momentum, but resistance at $0.69 is crucial.
• Market sentiment remains optimistic as Open Interest rises and bullish liquidations dominate.

Terra [LUNA] has grabbed market attention by breaking out of its prolonged downtrend and forming a golden cross, a reliable bullish indicator.

At press time, Luna traded at $0.7027, reflecting a 2.67% drop over the past day.

While this slight decline raised concerns, its technical and market metrics suggest the potential for a sustained rally if critical resistance levels are overcome.

Technical analysis: Golden cross signals potential

The golden cross, where the 50-day moving average crosses above the 200-day moving average, has reinforced Luna’s bullish narrative. This formation often signifies strong upward momentum. 

However, Luna is currently retesting the critical resistance level at $0.69, which represents a major hurdle.

A decisive break above this level could pave the way for further gains, while failure to do so might lead to price stagnation or a reversal. Therefore, this resistance level is key to Luna’s next move.