LUNC may have bottomed out – can bulls take advantage?
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Luna Classic bulls looked to take advantage of a critical price zone to rebound from extended bearish trend.
- Speculators positioned to cash in on bullish reversal in the derivatives market.
Luna Classic [LUNC] bounced off the $0.00005 price zone to halt the trend of all-time lows (ATLs). The bearish swing looked to have bottomed out, giving bulls an opportunity for a price reversal.
Read Luna Classic’s [LUNC] Price Prediction 2023-24
This was in stark contrast to the general bearish tendency in the market. Trading at $25.8k as of press time, Bitcoin [BTC] continued its steep price drop amidst uncertainty in the market.
Bulls finally halt trend of ATLs
LUNC’s price decline saw the token set a series of all-time price lows, as sellers dominated the price chart. The last attempt by bulls at a rally was met with stiff resistance at the $0.0000971 price level in mid-July.
Since then, it has been a free fall. However, events over the past 24 hours presented buyers with a price rebound opportunity.
Plotting the Fib retracement tool from the high of $0.0000971 to the recent low of $0.0000521 revealed key levels for bulls in their attempts to push back the severe bearish downtrend.
The bounce of the $0.00005 price level took buyers to the 23.6% Fib level ($0.0000629). The 12-hour candle close above this Fib level showed the willingness of buyers to defend the level and push on for more gains.
Therefore, further gains could lie at $0.0000695 (38.2% Fib) and $0.0000747 (50% Fib). If bulls successfully get to $0.00008 (61.8% Fib), that will signal a shift in momentum.
Bears on the other hand will be looking to kill any bullish rebound at the price zone between the 50% and 61.8% Fib levels. This could see LUNC form another range-bound movement, as evidenced in its price action between 3 August to 14 August.
Meanwhile, the RSI crawled out of the oversold zone, while the CMF flipped positive with a reading of +0.07. This signaled bullish conviction slowly returning for LUNC.
Market speculators willing to back bullish advance
How much are 1,10,100 LUNCs worth today?
The exchange long/short ratio showed an inclination by speculators in the derivatives market to advance the bullish charge. The 12-hour timeframe showed that longs held a 50.73% share of the open contracts, according to data from Coinglass.
Another bullish candle close on the 12-hour timeframe could spur Luna Classic buyers to rally for more bullish gains.