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Why the Terra Luna Classic price could continue to rally in January

  • Terra's Luna Classic has risen by 17% since January 9.
  • LUNC could rally an additional 18% targeting $0.00019437.
  • A candlestick close beneath $0.00015162 would invalidate the bullish outlook.

Terra's Luna Classic price could rally an additional 17% in the coming days. The bears will face a challenge near December’s monthly high if market conditions persist.

Terra's Luna Classic price to collect liquidity above

Terra's Luna Classic price is setting up a profitable opportunity in the near future. On January 11, LUNC price remains elevated after rallying by 17% the day prior. The volume profile indicator collecting data from Binance exchange API showed an influx of $250 billion worth of transactions, suggesting high-cap investors were involved in the surge. 

Luna Classic price currently trades at $0.00016701, down 10% from the recent uptrend's pivot point at $0.00018524. As the price consolidates, the 8-day exponential moving average and 21-day simple moving average hover directly below the market's trading range, suggesting support will arise if bears attempt to suppress LUNC further. 

Bullish targets lie just above December's monthly high at $0.00019437. The LUNC price would rise by 18% if the bulls were to succeed. 

tm/lunc/1/10/22

LUNC/USDT 1-day chart

Still, all uptrends are subject to failure, and Terra's technicals bare no exemption. The Relative Strength Index, an indicator used to gauge the strength of market participants through a measure of the speed and change of price movements, shows the recent uptrend is still within the bounds of a countertrend consolidation. The rally has formed a double top near the 60 level but has yet to signal an uptrend reversal by breaking out past 70. The previous overarching decline breached overbought territory at 30, suggesting bears are in control of the larger trend. 

 A candlestick close beneath the $0.00015162 pivot point would likely cause a market reversal. The bears could produce a 20% decrease from LUNC's current market value.




 

Author

Tony M.

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.

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