Losing Crucial Support LUNC Coin Price Is At Risk Of 17-25% fall

Over the last two months, the LUNC coin price showed multiple valid attempts to surpass the overhead supply zone of  $0.000184-$0.000195. Thus, with the increasing uncertainty in the crypto market due upcoming FOMC meeting, the sellers reclaimed the upper hand and breached the support trendline of the rising wedge pattern. Losing this support, the LUNC price is poised for a directional downfall. These are the levels coin holders should watch.                                                                                                                                                                                                                                           

Key points:

• A bearish breakdown from the wedge pattern’s support trendline threatens the LUNC price for a 17-25% downfall
• the bearish thesis will offer the daily candle closes above the rising trendline
• The intraday trading volume in the LUNC coin is $123.3 Million, indicating a 36.7% gain.

Source- Tradingview

The last two months’ recovery in LUNC coin price shaped into a rising wedge pattern. Two converging trendlines characterize this bearish continuation pattern, with both lines sloping upwards, creating a rocket-type shape. In theory, this pattern prepares a potential reversal from a bullish to a bearish trend as the price of an asset becomes squeezed between the two trend lines. 

Thus, on January 30th, the LUNC coin price gave a massive breakdown from the pattern’s support trendline, indicating the release of trapped bearish momentum. Today, though the coin price shows a 5% jump, this bullish candle is meant to retest the breached support and potential resistance.

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The higher price rejection attached to the daily candle indicates the sellers are defending the newly obtained resistance. Moreover, as per technical setup, the higher low during the pattern formation is a potential target for short-sellers after the breakdown. 

Thus, if the selling pressure persists, the LUNC price could plunge to $0.00016, followed by $0.000142, or $0.000128

On a contrary note, the daily candle close above the rising trendline will offset the bearish thesis and claim the prior breakdown as a Bear trap.

Technical Indicators

Relative strength index: the descending daily-RSI slope signals the sellers are gradually taking trend control. Thus, a breakout of the RSI line below the midline will give additional confirmation for the aforementioned downfall.

EMAs: with the recent breakdown, the LUNC price loses the support of 20-and-50-day EMAs, which in turn is in favor of sellers.

LUNC Crypto Price Intraday Levels

• Spot rate: $0.000172
• Trend: Bullish
• Volatility: High
• Resistance level- $0.000184  and $0.000195
• Support level- $0.00016 and $0.000142