Pennant Pattern Breakdown Indicates Strong Selling Pressure
The recent breakdown below the support level of the bearish pennant pattern suggests that sellers are gaining momentum in the Terra Classic Coin market. This is reflected in the weakening conviction of buyers, as seen in the correction trend breakdown below the 78.6% Fibonacci level. Currently, the LUNC coin is trading at $0.00009972 with a daily gain of 1.46%, but the intraday trading volume indicates a loss of 7.26%.
The LUNC coin has been experiencing a downward trend for almost two months, dropping from its peak at $0.0002 to the current trading value of $0.00099. This represents a substantial 64.5% decrease and indicates strong selling pressure in the market.
Analysis of the daily time frame charts reveals that the LUNC price has formed a new bearish continuation pattern, known as a Pennant, during its consolidation in January. On the 22nd of the month, there was a significant break from the 78.6% Fibonacci retracement tool and lower trendline of this pattern, suggesting that sellers are gaining momentum to continue the downward trajectory.
If this bearish trend continues, there is a possibility that the coin’s value might drop to $0.00008423 or even $0.000069, resulting in a further loss of around 30%.
Can LUNC Price Sustain $0.0001?
The Terra Luna Classic community has been actively burning LUNC coins since May 2022, with 95 billion coins burned so far. The upcoming token burn scheduled for February 1 on Binance is expected to help the community reach the target of burning 100 billion LUNC. If successful, this could potentially invalidate the bearish thesis and push the price above the resistance trendline of the triangle, prompting buyers to surge above the $0.00014 mark.
- Bollinger Band: A downtick in the lower boundary of the Bollinger Band indicator reflects aggressive selling in this asset.
- Average Direction Index: A daily ADX slope at 31% reflects that sellers may exhaust their downward momentum.
Hot Take: Will LUNC Price Recover?
Amidst market uncertainty, the Terra Classic Coin price has been trading sideways for most of January. The recent breakdown below the support level of a bearish pennant pattern indicates intensified selling momentum and a risk of further decline. The LUNC coin has experienced a significant drop in value, erasing much of its previous gains. The upcoming token burn event could potentially reverse this bearish trend and lead to a recovery in price. However, it remains to be seen whether the market conditions will support such a reversal.
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