Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Sellers extended long term bearish bias.
- Shorts continue to rule with a 55.29% advantage.
The lack of optimism around Luna Classic [LUNC] saw its bullish rally on June 4 quickly curtailed to extend its bearish structure.
Realistic or not, here is the market cap of LUNC in BTC terms
The market’s healthy gains, led by Bitcoin [BTC] promotion to $27k, did not result in any benefit to LUNC at the time of writing. Instead, sellers appear poised for another downward move.
Bears are extending dominance while the bullish rebound is subdued
Source: LUNC/USDT on trade view
Luna Classic’s bull run in early 2023 was taken as a sign that better things were to come for the LUNA spin-off. However, the opposite has been the case. The price rejection at the $0.0002063 resistance level in February ushered in a bearish swing from which LUNC has yet to recover.
Bears swept multiple levels of support and Luna Classic sank to an all-time low of $0.00007583. A combination of low trading volume and taking profits on every rally opportunity has kept LUNC firmly in the red.
The announcement of a proposed network upgrade led to a 35% pump on June 4. However, the rebound was short-lived as the price rejected at the $0.0001152 resistance level.
The indicators on the chart pointed to the dominance of sellers. The Relative Strength Indicator (RSI) has remained below the neutral 50 for weeks. The sharp climb to the overbought zone on June 4 was quickly reversed and LUNC returned to familiar territory. The On-Balance Volume (OBV) continued its decline and the Moving Average Convergence Divergence (MACD) recorded two bearish crossovers on June 9 and June 15.
With the price slowly moving towards the $0.00008115 support level, bears will want to extend their short gains with a session close below the support level. This could lead to further losses in the long run as LUNC struggles to find a price floor.
Read the Luna Classic price forecast for 2023-24
Shorts increase leverage in the futures market
Source: Coinglass
The exchange of long/short ratio data from Mint glass revealed that shorts prevailed, dominating the long/short ratio at 55.29%. This highlighted the firm bearish grip on LUNC’s price action.
Likewise, the unstable funding rate showed that market speculators were cautious about LUNC. Traders should exercise caution and watch for possible price reactions at the $0.00008115 support level before taking any new positions.
Source: Coinglass
