A bearish breakdown from the support trendline hints the LUNC price is poised for a major drop.
Published 4 seconds ago
Under the influence of a falling channel pattern, the LUNC Coin price has witnessed a steady downtrend over the past seven months. The coin price reverted thrice from the upper trendline and five times from the lower trendline indicating the pattern’s strong influence on the market participants. Even though the current consolidation phase in this coin reflects uncertainty, potential traders can rely on this pattern to predict a major move ahead.
Also Read: LUNC Price Hints a 12% Jump this Week, But There’s a Catch
Support Breakdown Hints Upcoming Downfall
- Until the channel pattern is intact, the LUNC price will extend the correction trend
- A breakout from this channel pattern could signal an early sign of trend reversal.
- The intraday trading volume in the LUNC coin is $6.4 Million, indicating a 16% loss.
Source- Tradingview
Recently, the Terra classic coin price has predominantly moved within a confined range, marking three weeks of consolidation. During this phase, a freshly formed support trendline provided a safeguard against deeper declines.
Yet, as broader market turbulence intensified, this support was punctured on October 3rd. While this breakdown was expected to intensify the selling momentum and prolong the correction phase, the lack of sufficient follow-up reflected a weakness in bearish momentum.
At the time of writing, the coin hovers around $0.03. If it establishes a foothold beneath the recently breached threshold, sellers might capitalize, potentially dragging it down by another 35% to meet the channel’s lower boundary at $0.0000375.
While this channel pattern leads to a steady downtrend, its lower trendline is preventing the LUNC price from a major correction.
Is LUNC Price Ready for Recovery?
Should the coin rebound and reclaim the territory above the breached support, traders would bear witness to a classic “bear trap” or false breakdown. Such a scenario could rejuvenate buying interest, propelling the coin upward by about 13% to test the channel’s upper resistance. A definitive breach of this resistance would serve as a bullish harbinger, potentially marking the beginning of a robust and sustained recovery phase, which could surpass $0.0001.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
