- Luna Classic price has formed the classic inverse head-and-shoulders pattern, hinting at a 25% upswing to $0.000232.
- Investors need to note that this outlook is possible if LUNC can overcome the initial hurdle at $0.000186.
- Invalidation of the pattern will occur if the altcoin breaks below the $0.000156 support level.
Luna Classic price is in the last leg of completing a bottom reversal pattern. If the development comes to fruition, this setup could trigger an explosive move for LUNC holders.
Luna Classic price ready to make hay
Luna Classic price has set up an inverse head-and-shoulders pattern on the four-hour chart, suggesting the possibility of a recovery rally. This technical formation contains two valleys of comparable depths on either side of a deeper valley. The one at the center is called the head, and the ones on either side are termed shoulders. Hence the namesake.
A horizontal resistance level connects the peaks of these valleys and is known as the neckline. If Luna Classic price can produce a four-hour candlestick close above this hurdle at $0.000186, it will confirm a breakout from the inverse head-and-shoulders.
This technical formation forecasts a 25% upswing to $0.000232 obtained by measuring the distance between the head’s lowest point and the peak to the right, and then adding it to the breakout point at $0.000186.
From the current position, this run-up, if successful, would yield early investors a 41% gain. However, the potential upswing is not as simple as it seems. The path is sprinkled with hurdles at $0.000192 and $0.000221. Overcoming these blockades is necessary for LUNC to reach its target at $0.000232.
LUNC/USDT 4-hour chart
Investors should note that the bullish outlook makes logical sense, but considering Bitcoin’s indecisiveness, a breakout might not happen. If Luna Classic price produces a four-hour candlestick close below $0.000156, it will invalidate the bullish thesis.
This development could see Luna Classic price slide to the immediate support level at $0.000148 or the subsequent variant at $0.000134.
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.