Terra Luna Classic: Long-term bearish bias reaches…
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Sellers extended long-term bearish bias.
- Shorts continue to hold sway with a 55.29% advantage.
The lack of optimism around Luna Classic [LUNC] saw its bullish rally on 4 June quickly curtailed to prolong its bearish structure.
Realistic or not, here’s LUNC’s market cap in BTC terms
The market’s healthy gains, led by Bitcoin [BTC] advancement to $27k, did not result in any upside for LUNC at press time. Instead, sellers look to be primed for another downward move.
Bears extend dominance as bullish rebound subdued
Luna Classic’s bull run at the start of 2023 was taken as a sign of better things 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 that LUNC is yet to recover from.
Bears swept away multiple support levels with Luna Classic sinking to an all-time low of $0.00007583. A combination of low trading volume and profit-taking at every rally opportunity has kept LUNC firmly in the red.
The announcement of a proposed network upgrade prompted a 35% pump on 4 June. However, the rebound was brief as price was rejected at the $0.0001152 resistance level.
The on-chart indicators highlighted sellers’ dominance. The Relative Strength Indicator (RSI) has remained under neutral 50 for weeks on end. The sharp climb into the overbought zone on 4 June was quickly reversed, returning LUNC to familiar territory. The On-Balance Volume (OBV) maintained its decline and the Moving Average Convergence Divergence (MACD) posted two bearish crossovers on 9 June and 15 June.
With price slowly moving toward the $0.00008115 support level, bears will be looking to extend their shorting gains with a session close under the support level. This could lead to further losses in the long term, as LUNC struggles to find a price bottom.
Read Luna Classic’s Price Prediction 2023-24
Shorts extend leverage in futures market
The exchange long/short ratio data from Coinglass revealed that shorts held the upper hand, dominating the long/short ratio by 55.29%. This highlighted the firm bearish grip on LUNC’s price action.
Similarly, the unstable funding rate showed market speculators were taking a cautious approach toward LUNC. Traders should exercise caution and watch for potential price reactions at the $0.00008115 support level before entering new positions.