LUNC Traders Might Trade with Trend as Resistance Zone Looms Ahead
Terra Classic’s LUNC witnessed massive volatility on its charts this month. The alternative token gained approximately 150% during September’s first week. Meanwhile, the following week saw the price losing most of its upsides. What should we expect from LUNC in the week ahead?
LUNC 12Hr Timeframe
Analysts drew FIB retracement zones based on LUNC’s September upsides. The 78.6% retracement mark at $0.0003 served as support early this week before succumbing to the selling momentum. Also, the token flipped the level to support again during the previous day.
The bullish block around the $0.00024 mark witnessed a remarkable reaction recently, with the price bouncing by 30% from lows. Nevertheless, it swiftly approached the resistance zone near the 61.8% retracement mark. September’s initial week printed a bullish order block that witnessed LUNC rapidly surging to $0.00059 from $0.00034.
Meanwhile, the asset has flipped the order block to resistance and would potentially serve as the seller’s stronghold again. Thus, selling opportunities might materialize during the coming few days if the token maintains its upside toward $0.00036.
The indicators didn’t flash a bullish case either. Meantime, the 4-hour RSI (Relative Strength Index) climbed beyond the 50-neutral level. Such a move saw the indicator forming a concealed bearish divergence. The token’s price printed a lower high as the momentum indicator flashed a higher high.
That might see the price responding bearishly within the coming few days. Also, the OBV (on-balance volume) climbed past the support mark from early on the month, though barely beyond the mark. The OBV remained relatively flat over the previous week, even as the price witnessed an enormous drop.
That indicated that the selling momentum wasn’t as massive as anticipated, and revival was possible. Meanwhile, the CMF (Chaikin Money Flow) swayed in the neutral region within the previous week, highlighting an absence of substantial money flow out of or into the market.
LUNC’s price action demonstrated a massive potential of rejection around the $0.00036 territory. The absence of selling pressure within the previous week indicated possible recoveries. Meanwhile, LUNC’s bias would stay bearish until the altcoin surges beyond $0.00036 and flip the mark to support.