Luna Classic price craters as FTT tanks 70% following FTX massacre

• Luna Classic price action only tanks 23% on the back of news that the Binance merger with FTX is an empty shell.
• LUNC price action could trigger another 76% decline in the coming weeks.
• Expect to see very nervous and choppy price action as this turns into a Nightmare on Elm Street sequel for cryptocurrencies.

Luna Classic (LUNC) price action had its own Gordon Gecko moment, or in this case Changpeng Zhao’s Binance Holding. The battered FTX exchange had hopes of being salvaged after Zhao came out with a letter of intent to take over FTX and merge it with his big crypto whale Binance. However, it turned out that the letter of intent does not hold any legal binding and thus could see Binance walk away quite easily from the deal as they see fit, should the price tag become too expensive.

LUNC price action at a crossroads to reenter the bear market

Luna Classic price action was doing so well, as price action had a massive recovery in September, and although performance in October was a bit downtrending, at least price action behaved normally. That confidence investors are looking for is gone as suddenly this massive shock on a possible default by FTX has made its utility coin FTT implode by 70% overnight. This, in its turn, has made investors slam the brakes on their holdings by selling across the board in every crypto and alt-currency. 

LUNC price action is currently seeing selling pressure at a very dangerous point near $0.00016500, which is the intersection between the red descending trend line since September and the pivotal level from May 30. Should LUNC price action break and close below there, expect to see a reentry in bear market territory with many more losses to come. Those losses could even mount to 76% should the market cap of LUNC shrink, with $0.00004824 as the lowest level in its existence.

LUNC/USD daily chart

Should the level hold overnight and trigger a close above the level, expect to see more support. The Relative Strength Index (RSI) backs this idea as it is trading near or at the oversold level, which means that selling more now would hold very slim returns as there is not much more room to go lower. In that case, expect small recoveries as investors lick their wounds, with a return to the monthly S1 at $0.00020000.