- Terra's Luna Classic price has fallen by 13% after an early month uptrend spike.
- A previous triangle consolidation broke out to the upside, which could spell bad news for the LUNC price action.
- A breach of the $0.00016000 level could trigger a 16% sweep-the-lows event.
Terra's Luna Classic broke out from a range-bound consolidation beginning in December. Investors quickly triggered their sell orders during the uptrend mover and have since forged a steep declining trend. If the LUNC does not hold support near current levels, a liquidation event could take place.
Luna Classic price steeply declines
Terra's Luna Classic price has recently shown an uptick in volatility. After a week of congestive price action near the $0.00016000 price zone, LUNC produced a sudden 16% uptrend rally. On December 2, the bulls met their match as the uptrend's final high was produced at $0.00019437. The bears quickly took hold of the trend forging a 13% loss of market value in the process.
Luna Classic price currently trades at $0.00016897 as the bears have successfully breached the 8-day exponential moving average. The 21-day simple moving average lies below the current auctioning price and awaits the first retest following the bull's successful breach during the 16% rally.
Traders should remember that the consolidation triangle, assessed throughout November, broke out to the upside. Based on classical price action and Elliott Wave theory, triangle consolidations are usually the last pattern displayed before a market reversal. Because the triangle broke out north, Luna Classic's uptrend's potential may be capped and due for more decline.
The earliest evidence that the downtrend will continue will be displayed if the bears can tag the $0.00016000 liquidity zone. A further decline targeting the November low at $0.00013359 would stand a fair chance of occurring as a result of the aforementioned breach.
LUNC/USDT 1-day chart
Invalidation of the bearish thesis could occur if the bulls can produce a reversal pattern near the current price zone and hurdle the $0.00018000 level. In doing so, the bulls could re-route north and target the December 2 high at $0.00019437. Such a move would result in a 15% 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.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.