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This a near-perfect opportunity to short Terra’s LUNA Classic price to $0.000176

  • LUNA Classic price wicked up to $0.000275, collecting liquidity above all swing highs formed after October 15.
  • This move was a second opportunity to add to the short position for LUNC discussed previously.
  • Investors can expect the altcoin to slide lower as the market hints at a correction.

LUNA Classic price has been at the mercy of sellers for quite some time, but that changed on October 30. As buyers stepped up, LUNC exploded higher, but the gains were undone just as quickly, leaving this move as a liquidity run before the altcoin continued to slide lower.

LUNA Classic price ready for its second leg

LUNA Classic price has been on a downtrend since it broke out of its head-and-shoulders setup on October 10. Since then, the altcoin has shed roughly 15% to where it currently stands - $0.000248. 

Even before the breakdown, a short setup was provided in a previous article and is still in play. LUNA Classic price formed a bottom around $0.000224, just above the head-and-shoulders pattern’s target at $0.000200. A bounce from this makeshift bottom propelled LUNC higher, but on October 15, it spiked higher to collect the buy-stop liquidity. This move was a second opportunity for investors to short the altcoin..

The $0.000220 is the first target for this downswing, but based on the volume profile indicator, there is evidence that LUNA Classic price could slide even lower. The low-volume nodes at $0.000176 and $0.000142 are the stretch targets for this short setup.

LUNCUSDT 4-hour chart

LUNCUSDT 4-hour chart

While the outlook for LUNA Classic price seems as bearish as it can get, investors need to note that altcoins are going haywire in light of the recent bullish resurgence. Therefore, a sudden spike in buying pressure that propels LUNC to produce a four-hour candlestick close above $0.000279 will invalidate the bearish thesis.

This development could see LUNA Classic price extend this run-up to $0.000310.

Here's how Bitcoin's moves could affect LUNA Classic price 

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

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