- Terra Luna Classic was rejected from the range highs, but could see a price increase soon.
- Liquidity levels indicated that the token could see a double-digit percentage decline over the next two weeks.
Terra Luna Classic [LUNC] retested the highs of the two-month-old range during the recent rally but failed to break the resistance level. It climbed past the mid-level on August 21, when Bitcoin [BTC] jumped above the $60,000 mark.
The bankruptcy court order in the case of Terraform Labs meant that the Shuttle Bridge could be opened to facilitate token movements between Terra and other blockchains. This could help the company’s restructuring efforts.
The range-based price action continues
Source: LUNC/USDT on TradingView
Luna Classic has been trading in the $0.0000637-$0.0000964 range since early July. The most recent attempt to break the range peaks failed. According to the Awesome Oscillator, momentum was bullish but weakened.
The OBV was unable to break the July highs, meaning the buying volume was not high enough to increase the chances of a LUNC breakout.
The current market price was still above the mid-range support level. It is unclear whether prices can maintain this level or are heading for a deeper price decline. The liquidity charts offered some clues.
LUNC may be heading for a low, but bears need patience
The liquidation heatmap showed that the $0.0001 and $0.000063-$0.000071 zones were the next magnetic zones for the price.
Given the high rejection rate, AMBCrypto concluded that a downward move was more likely over the next two weeks.
The cumulative delta of fluid levels over the past few days has been intensely negative. The conclusion here is that a short squeeze is likely before the move to the lows of the range can begin.
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The $0.000087 and $0.000091 levels were the short-term bullish targets. Swing traders could use a price rise to look for opportunities to sell LUNC.
Disclaimer: The information presented does not constitute financial advice, investment advice, trading advice or any other form of advice and is solely the opinion of the writer