warning: The results of the following analysis are the author’s opinions only and should not be considered investment advice.
TERRA CLASSIC [LUNC] It saw big swings on the charts in September. It showed gains of close to 150% in the first week of September. In the following week, the price regained much of this upward movement. What is LUNC until next week?
LUNC – 12 Hour Chart
A set of Fibonacci retracement levels for LUNC’s rally towards the sky in September has been plotted. The 78.6% retracement level at $0.0003 acted as support earlier this week but succumbed to selling pressure. During the last day’s trading, this level once again turned into a support level.
The bullish order block (cyan box) in the $0.00024 region has seen a decent reaction in recent days as the price rebounded 30% from its lows. However, it was quickly approaching the resistance area at the 61.8% retracement level. In the first week of September, a bullish order block was formed, causing LUNC to quickly rise from $0.00034 to $0.00059.
The same order block has now turned into resistance, and will likely serve as the seller’s stronghold again. Therefore, selling opportunities may appear in the next few days if Terra Classic continues to gain towards $0.00036.
The indicators also did not show a bullish picture. It was true that the H4 Relative Strength Index (RSI) managed to climb back above the neutral 50 level. But by doing so, it formed a hidden bearish divergence. The price made a lower high while the momentum indicator made a higher high. This development may cause the price to react bearishly over the next few days.
Balance Volume (OBV) also rose above the support level from early September, but just barely. It has been relatively unchanged over the past week, although the price has fallen sharply. This indicates that selling pressure was not as high as expected, and a recovery was likely.
Chaikin Money Flow (CMF) has also remained in neutral territory over the past week, once again highlighting the lack of significant capital inflow into or out of the market.
The price action showed that there is a strong chance of a rejection of $0.00036. The lack of selling volume over the past week indicates the possibility of a recovery. Until LUNC can break above the $0.00036 level and turn it into support, the bias will remain bearish.