$LUNA2 The current RSI indicator has dropped to 29.5—what does this number mean? An oversold signal indicating deepness. But more noteworthy is: just 12 hours ago, the bears were liquidated for $2.83 million.

Looking at these two data points together, the story changes. When market sentiment is extremely pessimistic, it’s often a precursor to a reversal. The short positions that were wiped out have, to some extent, cleared the resistance for a potential subsequent rebound.

Now, the long-to-short ratio is close to 1:1 (specifically 50.9% versus 49.1%), and the market is in a strange state of calm. There’s no panic selling, nor is there chasing the rally. This extreme balance usually doesn’t last long in history.

From a technical perspective, a few key levels:

If the price can break above $0.218 with volume, it can be seen as an initial confirmation signal of a trend reversal. But at the same time, a stop-loss should be set—if it falls below $0.185, it indicates that the downtrend may continue, and decisive stop-loss action is necessary.

After breaking through, target levels can be around $0.230–$0.235. For a more aggressive approach, $0.245–$0.250 is also possible.

The RSI has already been oversold to this extent; most of the chips that need to move have already moved. The remaining question is: when will new buying interest come in? The data is here, and how to interpret it depends on each individual.