After tapping a low of $0.00011 on January 3, the price of Terra Luna Classic (LUNC) jumped and hit $0.00013 recently. The increase represents an approximately 30% price rise. Despite the run, LUNC was unable to hold the region.
At press time, LUNC was trading at $0.00012, based on CoinMarketCap data. Ten days ago, Coin Edition reported how LUNC had the attention of the market. During that time, the cryptocurrency showed indications that it could break into the top 50.
However, press time data showed that LUNC’s market cap position was at number 89. In terms of the price action, the 4-hour chart showed that a descending channel pattern had been formed.
LUNC Attempts to Breakout
From the chart below, the trendline had broken below different support levels. On December 26, bulls could not defend the $0.00014 support. So, the price declined. The support subsequently fell to $0.00012 on January 4. Again, the price fell.
However, the following drop to $0.00011 seemed like the breakthrough LUNC needed. Buying pressure pushed the price back up to $0.00012. Furthermore, signals from the pattern suggested that the price could rapidly move to the upside and hit $0.00014 once more.
The RSI had also formed a positive divergence by forming higher lows. If LUNC’s price makes lower lows, it could confirm the bias and possibly trigger a breakout.
However, the RSI is only one of many indicators needed to help LUNC achieve the prediction. Indicators from the Awesome Oscillator (AO) showed that the reading was negative.
LUNC/USD 4-Hour Chart (Source: TradingView)
This negative reading implies that the 5-period MA was not greater than the 34-period MA, suggesting a bearish momentum. However, the trend can quickly reverse if buying momentum increases. Should this happen, LUNC may rise to $0.00014.
On the other hand, a shortage of buyers could cause the LUNC price to keep hovering around $0.00011.
A Move to $0.00014 Is Likely
Coinglass data showed that the Open Interest had decreased significantly, At press time, LUNC’s it was down to $6.9 million. Toward the end of December 2023, it was as high as $20 million.
The decrease implies that market participants were increasingly closing their net positions. Also, shorts with open positions were more aggressive than longs.
LUNC Futures Open Interest (Source: Coinglass)
This Open Interest decrease might lead to LUNC climbing back into the resistance at $0.00014 if buying pressure increases. But if buying pressure does not increase, the price might dump into the support at $0.00011.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Read the full article here