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.
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