- Terra Luna Classic is out of the top price range, but there is a chance that its price will rebound soon.
- Looking at liquidity levels, it seems likely that the token will fall by double-digit percentages over the next two weeks.
Terra Luna Classic (LUNC) retested the highs of its two-month range during the recent rally, but failed to break above the resistance level. It broke above the mid-range level when Bitcoin (BTC) broke $60,000 on August 21.
The bankruptcy court order in the Terraform Labs case means that a shuttle bridge can be opened to facilitate token movement between Terra and other blockchains, which could aid the company’s restructuring efforts.
Price movement continues within the range.
Source: LUNC/USDT on TradingView
Luna Classic has been trading in a range of $0.0000637-$0.0000964 since early July. The most recent attempt to break above the range high failed. Momentum was bullish but weakening according to the Awesome Oscillator.
OBV failed to renew its July high, meaning buying volume was not sufficient to increase the likelihood of a LUNC breakout.
The current market price is still above the mid-range support level. It is unclear whether the price can hold this level or head towards a deeper price decline. The liquidity chart provided some clues.
LUNC may be heading towards the lows but bears need patience.
Source: Highblock
The liquidation heatmap showed that the $0.0001 and $0.000063-$0.000071 zones were the next magnetic zones for price.
AMBCrypto concluded that given the high rejection range, a downside is more likely in the next 1-2 weeks.
Source: Highblock
The cumulative liquidity level delta has been very negative over the past few days. The conclusion here is that a short squeeze is likely to occur before moving to the range low.
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The $0.000087 and $0.000091 levels were short-term bullish targets. Swing traders could look for opportunities to sell LUNC on price bounces.
Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.