- Luna Classic price approaches the head-and-shoulders forecasted target at $0.000220.
- A breakdown of the aforementioned level could see LUNC plummet to the $0.000176 to $0.000142 levels.
- A daily candlestick close above $0.000278 will invalidate the bearish thesis for the Terra Classic coin.
Luna Classic price action since September set up a bearish pattern that resulted in a massive sell-off. This move is already close to achieving its target, but the nosedive for LUNC will likely continue.
Luna Classic price continues to shed
Luna Classic price saw a 56% upswing on September 26 due to the ‘burn mechanism’ announcement from Binance. While bullish in the short and long term, LUNC started its rangebound movement, which created a bearish setup known as head-and-shoulders.
This technical formation forecasts a 25% downswing, determined by measuring the distance between the head’s peak and the valley to the right and adding it to the breakout point at $0.000291.
As mentioned in the previous article, this target is extremely close to being retested as the Luna Classic price is also down 19% from its breakout on October 10. Going forward, investors can expect a slowdown around $0.000220, but an eventual breakdown of this level will trigger another selloff to $0.000176 and $0.000142 levels.
A retest of the $0.000142 level move would constitute a 50% move from the breakout point at $0.000291 and is likely where the downside is limited for the Terra Classic coin.
LUNCUSDT 4-hour chart
While things are looking up for Luna Classic price, a reversal in momentum followed by a daily candlestick close above $0.000278, aka the highest traded volume since August 24, will invalidate the bearish thesis.
Such a development in Luna Classic price will indicate that the buyers are back in town and are likely here to stay. A flip of the $0.000278 level into a support floor would build confidence in sidelined buyers and potentially trigger a run-up to $0.0000329.