• 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.

tm/lunc/12/6/22

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.

Recommended content


Recommended Content

Editors’ Picks

Pi Network rally halts under $0.80 as traders speculate about upcoming  ecosystem announcement 

Pi Network rally halts under $0.80 as traders speculate about upcoming ecosystem announcement 

Pi Network’s recent price action sends multiple buy signals, but resistance under $0.80 appears to be capping the uptrend. The Pi Network team teases a major announcement on May 14, fueling speculation and trader interest on the coin.

Bitcoin Weekly Forecast: BTC bulls aim for $105,000 after nearly 10% weekly gains

Bitcoin Weekly Forecast: BTC bulls aim for $105,000 after nearly 10% weekly gains

Bitcoin price stabilizes around $103,000 on Friday after rallying nearly 10% this week. Risk-on sentiment prevails as Trump announced a trade deal with the UK and ahead of the meeting with China this weekend.

Dogecoin price jump above $0.20 triggers $13 million in liquidations

Dogecoin price jump above $0.20 triggers $13 million in liquidations

Dogecoin price edges higher after stepping above $0.20 and climbing to trade around $0.21 at the time of writing on Friday. The leading meme coin's uptrend mirrors a broad-based bullish wave in the market, triggered by the trade agreement between the US and the UK on Thursday. 

 XRP price could hit $3 on $50M SEC settlement

XRP price could hit $3 on $50M SEC settlement

Ripple and the SEC strike a $50 million settlement agreement pending judicial approval. A joint motion in the US District Court aims to lift Ripple’s injunction and release $125M in escrowed penalties.

Bitcoin: BTC bulls aim for $105,000 after nearly 10% weekly gains

Bitcoin: BTC bulls aim for $105,000 after nearly 10% weekly gains

Bitcoin (BTC) price is stabilizing around $103,000 at the time of writing on Friday after rallying nearly 10% this week.

The Best brokers to trade EUR/USD

The Best brokers to trade EUR/USD

SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.

BTC

ETH

XRP