LUNC Price Analysis Hints Signs of Trend Reversal; Back To Square One?

In the daily time frame chart, the LUNC price shows the formation of a rising parallel channel pattern. This structure occurs when prices are moving higher and is contained within two parallel trend lines that are sloping upwards. The coin holders can remain bullish with this pattern until the prices remain contained within the channel. However, on February 9th, the coin price gave a bearish breakdown from the pattern’s support trendline, indicating an upcoming downfall.                                                                                                                                                                                                                              

Key Points:

• Over the past two months, the LUNC price rallied a sustained recovery under the influence of the rising channel pattern.
• A Bearish breakdown from the pattern’s trendline threatens LUNC price for a 25% downfall.
• The intraday trading volume in the LUNC coin is $93.6 Million, indicating a 23% loss.

Source- Tradingview

With a series of higher highs and higher lows, the LUNC price recently reached a three-month high of $0.00021, registering 65% from December 2021 bottom support of $0.000126.

However, with the increase negatively in the crypto market, the LUNC price started to fall and pierced the support trendline of the parallel channel pattern. This breakdown may intensify the selling pressure and can be considered a signal for trend reversal.

By press time, the LUNC price traded at $0.00016 and tried to retest the breached support as potential resistance. The higher price rejection attached to the daily candle indicates the sellers are actively responding to new resistance.

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Thus, a post-retest downfall could tumble the prices to the following support $0.00015, $0.000138, $0.000126, hinting at a max pain of 25% loss. 

However, each of the aforementioned levels is strong support that may try to undermine selling pressure.

Technical Indicators

Relative Strength Index: the daily RSI slope plunged below the midline, indicating a negative shift in market participants’ sentiment.

EMAs: the recently breached 20-and-50-day EMA slope are flipped into viable resistances offering an extra edge to short sellers

LUNC Crypto Price Intraday Levels

• Spot rate: $0.000167
• Trend: Bullish
• Volatility: High
• Resistance level- $0.000184and $0.00021
• Support level- $0.00015 and $0.00013