Akash Girimath
FXStreet
Terra Luna Classic price has set up fresh lows for 2023 after a steep correction in early March. In the last 24 hours, LUNC has revisited this level again, setting up a strong base for a recovery rally. Investors can spot three main signs that will signal the start of this bounce to capitalize on it.
Also read: Terra Luna Classic token burn sees massive spike, will LUNC price begin its recovery soon?
Terra Luna Classic price oscillates between two high timeframe levels, $0.0001813 and $0.0001320. The last time LUNC deviated below the range low was in late December 2022, the recovery rally propelled the altcoin by 40% initially and 60% over the next few days.
The current deviation below the range low is attempting a recovery, but here are three signs that should help make a case for a bounce.
A shift in market structure involves Terra Luna Classic price producing a higher high with an impulsive move on a lower timeframe. In this case, any timeframe lower than four-hour. The said higher high that is produced with an impulsive move needs to have an imbalance or Fair Value Gap (FVG) as seen below.
Once this shift in market structure has been noted, the altcoin will retrace into the FVG, making it an ideal place for a low timeframe entry. Due to the current oversold conditions and deviation below the range low of $0.0001320, the chances of a bounce are higher for Terra Luna Classic price.
LUNC market structure shift example
So, investors should expect LUNC to trigger a 17% upswing to $0.0001542 from a conservative standpoint. But in some cases, this move could extend to $0.000160, which is the midpoint of the FVG formed during the Silvergate crisis-led crash on March 2. This move would bring the total gain from 17% to 21%.
LUNC/USDT 1-day chart
While the bullish outlook for Terra Luna Classic price makes sense, it is hinging on a shift in market structure on a lower timeframe. Due to the recent updates in the macroeconomic policies, investors are likely going to remain relatively neutral or risk-averse.
Hence, if Bitcoin price takes a tumble, altcoins will definitely take a hit. In such a case, if Terra Luna Classic price produces a four-hour candlestick close that flips the $0.00001271 level into a resistance barrier, it would create a fresh low for 2023 and invalidate the bullish thesis.
Such a move could prompt a further selloff, knocking LUNC to $0.0001206.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Join Telegram
Join Telegram
Bitcoin open interest outperformed the entire cryptocurrency market in August, amid hype relating to Bitcoin Spot Exchange-Traded Fund (ETF). The comparison follows a report by Bitfinex, noting that outflows reached $55 billion, with the liquidity crunch giving event-based volatility more influence on prices.
Axie Infinity price rise is evidence that any iota of optimism is serving as a motivation for investors to act bullish, given the condition of the crypto market. AXS holders rushed to stack up on the token, resulting in the cryptocurrency noting double-digit gains.
At a time when the crypto market is not faring well, it would be a stretch to assume that the likes of social tokens would be able to gain attention. However, Friend.tech has debunked that theory rather spectacularly as it has managed to break records for the second time just a month after its launch.
The effects of the bear market continue to bring losses to many, be it investors or companies. The newest victim on the block is Digital Currency Group’s Genesis. While the lending platform was already bankrupt as of January this year, the firm is now shuttering all crypto services.
Bitcoin price remains unfazed by the US CPI announcement on September 13 and continues to move in a range. The weekly chart, however, shows a potential short-term recovery rally that could set the stage for a steep correction.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXStreet are those of the individual authors and do not necessarily represent the opinion of FXStreet or its management. FXStreet has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and omissions may occur. Any opinions, news, research, analyses, prices or other information contained on this website, by FXStreet, its employees, clients or contributors, is provided as general market commentary and does not constitute investment advice. FXStreet will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
