- Terra's Luna Classic price has fallen by 13% after an early month uptrend spike.
- A previous triangle consolidation broke out to the upside, which could spell bad news for the LUNC price action.
- A breach of the $0.00016000 level could trigger a 16% sweep-the-lows event.
Terra's Luna Classic broke out from a range-bound consolidation beginning in December. Investors quickly triggered their sell orders during the uptrend mover and have since forged a steep declining trend. If the LUNC does not hold support near current levels, a liquidation event could take place.
Luna Classic price steeply declines
Terra's Luna Classic price has recently shown an uptick in volatility. After a week of congestive price action near the $0.00016000 price zone, LUNC produced a sudden 16% uptrend rally. On December 2, the bulls met their match as the uptrend's final high was produced at $0.00019437. The bears quickly took hold of the trend forging a 13% loss of market value in the process.
Luna Classic price currently trades at $0.00016897 as the bears have successfully breached the 8-day exponential moving average. The 21-day simple moving average lies below the current auctioning price and awaits the first retest following the bull's successful breach during the 16% rally.
Traders should remember that the consolidation triangle, assessed throughout November, broke out to the upside. Based on classical price action and Elliott Wave theory, triangle consolidations are usually the last pattern displayed before a market reversal. Because the triangle broke out north, Luna Classic's uptrend's potential may be capped and due for more decline.
The earliest evidence that the downtrend will continue will be displayed if the bears can tag the $0.00016000 liquidity zone. A further decline targeting the November low at $0.00013359 would stand a fair chance of occurring as a result of the aforementioned breach.
LUNC/USDT 1-day chart
Invalidation of the bearish thesis could occur if the bulls can produce a reversal pattern near the current price zone and hurdle the $0.00018000 level. In doing so, the bulls could re-route north and target the December 2 high at $0.00019437. Such a move would result in a 15% increase from the current Luna Classic price.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
SEC doubles down on TRON's Justin Sun lawsuit dismissing claims over jurisdiction
The SEC says it has jurisdiction to bring Justin Sun to court as he traveled extensively to the US. Sun asked to dismiss the suit, arguing that the SEC was targeting actions taken outside the US.
XRP fails to break past $0.50, posting 20% weekly losses
XRP trades range-bound below $0.50 for a sixth consecutive day, accumulating 20% losses in the last seven days. Ripple is expected to file its response to the SEC’s remedies-related opening brief by April 22.
ImmutableX extends recovery despite $69 million IMX token unlock
ImmutableX unlocked 34.19 million IMX tokens worth over $69 million early on Friday. IMX circulating supply increased over 2% following the unlock. The Layer 2 blockchain token’s price added nearly 3% to its value on April 19.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?