• Terra's Luna Classic is down 4% on the day and shows signs of a market reversal.
  • The bears couldn't do a 20% decline from the current LUNC price.
  • The bulls need to hurdle the $0.00019621 resistance level to void the bearish outlook.

Terra's Luna Classic shows signs of a trend failure. Early bulls in the market may want to brace themselves for a steeper retracement. Bears could position themselves for a profitable trade idea in the coming days.

Terra's Luna Classic price setting up a market reversal

Luna Classic price could be in the initial stages of a strong decline. On January 24, the bears have breached the 8-day exponential moving average, forging a 3% loss on the day. Although the decline seems minuscule, it is accompanied by a bearish divergence on the Relative Strength Index (RSI). 

The divergence can be spotted with a keen eye when analyzing the January 15 closing price at $0.00018075 and the January 22 closing price at $0.00018172. The January 22 day showed a lower reading on the RSI, which justifies the idea that the bullish trend may already have ended.

Terra Luna Classic Price currently auctions at $0.00017302. If the market is genuinely taking a turn to the downside, the key levels for bears to aim for will be the $0.00015000 liquidity level and the $0.00013200 level if bulls do not step into providing support. The bearish scenario creates a 24% decline from the current market value.

tm/luna/1/24/22

LUNC/USDT 1-day chart 

The invalidation of the downtrend thesis would arise from a breach above the January 14 swing high marked at $0.000019621. A. breach of the level could induce a buying frenzy to challenge higher liquidity levels above. The next expected resistance would come in near the $0.00020882 level. The bull scenario would create a 23% 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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Cardano Price Prediction: The market bottom no one wants to call

Cardano Price Prediction: The market bottom no one wants to call

Cardano price continues to make gains in the crypto market, as the smart contract has risen 70% since January 1, reaching a new uptrend high at $0.4138. Despite the skeptical market sentiment for risk assets, Cardano’s Price action remains unfazed.

More Cardano News

Algorand Price Prediction: Bulls aiming for a 25% spike

Algorand Price Prediction: Bulls aiming for a 25% spike

Algorand price is showing an applaudable amount of strength to start the month of February. The scalable blockchain token could rally an additional 25% if market conditions are met.

More Algorand News

Crypto.com Price Prediction: CRO at a crossroads

Crypto.com Price Prediction: CRO at a crossroads

Crypto.com price has been trading within a 10% range for nearly two weeks. The $0.08 barrier has consistently acted as resistance, and the mid-$0.07 has acted as support. The coiling range has yet to make a decision on which way it will resolve.

More Crypto.com News

Terra Classic Price Analysis: Ray Dalio’s outright negativity on crypto existence is bad PR for LUNC

Terra Classic Price Analysis: Ray Dalio’s outright negativity on crypto existence is bad PR for LUNC

Terra Classic (LUNC) could only book roughly a 1.4% gain on the back of the Federal Reserve meeting from late Wednesday, which triggered upswings in all risk asset classes. The biggest winner of the evening was EUR/USD, as it traded over 1% higher and broke 1.10 to the upside.

More Terra Classic News

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin: If bulls are back, this is where you can accumulate BTC next

Bitcoin price shows a lack of momentum after an explosive move in the last three weeks. The fourth week has been relatively silent, without a lot of volatile moves. While BTC consolidates, other altcoins are rallying left and right, providing massive gains.

Read full analysis

BTC

ETH

XRP