Luna Classic Price Prediction: LUNC nowhere near the bottom as investors continue to sell
- 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.
Author
Tony M.
FXStreet Contributor
Tony Montpeirous began investing in cryptocurrencies in 2017. His trading style incorporates Elliot Wave, Auction Market Theory, Fibonacci and price action as the cornerstone of his technical analysis.
