- 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.
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.