The LUNC Price Recovery Stalls at Resistance, Indicating Bearish Reversal
The LUNC coin experienced a significant recovery in February, with a 53.6% surge in just two weeks. However, the altcoin’s price has recently stalled at the $0.000137 resistance level, suggesting a potential bearish reversal.
This consolidation phase in the crypto market, coupled with Bitcoin’s struggle to surpass the $52,000 barrier, has sparked concerns of a correction trend among altcoins.
If the sellers continue to exert pressure and the overhead supply persists, the LUNC price may undergo an 18% correction and find support at $0.000116.
An analysis of the daily time frame chart reveals the possibility of an inverted head and shoulder pattern, indicating a transition from a downtrend to an uptrend. If the broader trend remains bullish, there may be opportunities for traders to enter at retracement levels of $0.000122 or $0.00011.
To confirm this potential breakout, buyers should wait for a decisive move above the $0.000137 resistance level.
Technical Indicator
- Average Directional Index (ADX): The ADX slope currently stands at 32%, suggesting that buyers may soon exhaust their momentum and require a pullback to recover.
- Exponential Moving Average (EMA): The daily EMAs (20, 50, 100, and 200) indicate a recovery sentiment in the market.
Source: Twitter
Hot Take: Will LUNC Price Experience Further Losses?
The LUNC price’s failure to break through the $0.000137 resistance level raises concerns about a potential bearish reversal. As the broader crypto market experiences high volatility and consolidation, it is crucial for buyers to monitor the price action carefully.
While a retracement to $0.000122 or $0.00011 may present a pullback opportunity, it is essential to wait for a decisive breakout above the resistance level for confirmation.
With the ADX indicating potential exhaustion among buyers and the EMAs reflecting recovery sentiment, traders should exercise caution and consider risk management strategies.
Source: Twitter
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