LUNC shows strong bearishness, here’s what you need to watch out for

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

• LUNC was gradually sinking lower down the charts after the failure to breach $0.00009 on 22 July.
• Further losses are likely as momentum favored the sellers.

Terra Luna Classic [LUNC] noted a bullish performance in the market in early July. The price bounced from a critical support zone and posted gains that measured close to 23%. Yet, over the past three weeks, all these gains have been wiped out.

Read Terra Luna Classic [LUNC] Price Prediction 2023-24

A set of Fibonacci retracement levels was plotted based on the recent LUNC drop that began on 22 July. It showed that the 50% retracement level was within the breaker block. Therefore, a bounce to this region and subsequent rejection would offer a shorting opportunity. But will traders get such a bounce?

The breaker block and Fibonacci retracement confluence offer a high probability selling opportunity

Source: LUNC/USDT on TradingView

The 4-hour price chart of LUNC showed a bearish structure. The coin has been in a downtrend since February, although the strength of the trend has slowed down considerably after mid-May. At the time of writing, the former support zone, highlighted by the large red box, was slowly being flipped to resistance.

It represented a region of interest on the 1-day price chart. LUNC has bounced multiple times from this zone of support, but losing it would likely mean extended losses for the token. On the 4-hour chart, a breaker block (white) was also identified. The confluence at $0.000084 was worth watching.

The RSI has been below neutral 50 on the 4-hour chart since mid-June. This signaled strong bearish pressure in the past six weeks. However, the OBV has climbed higher over the past week, showing some demand was present behind LUNC.

How much are 1, 10, or 100 LUNC worth today?

The Open Interest chart showed bulls were eager to capitalize on bounces

Source: Coinalyze

The price has been without a notable trend in the past week. There was some more volatility in the past 72 hours than in the week before. During LUNC price bounces, the Open Interest surged higher. It fell later as prices dipped.

This showed that the majority of the market was not bullish. However, some LUNC bulls were eager to enter the market upon any positive price action. It was unlikely that this could fuel a bounce toward the $0.000084 level.