Terra Luna Classic (LUNC) has been trading within a specific range since early July. Despite a recent rally that saw the token retest the range highs, it was unable to break through the resistance level. This suggests that the bullish momentum is waning.
Factors Affecting LUNC’s Price
Several factors are influencing LUNC’s price. The bankruptcy court order in Terraform Labs’ case could potentially facilitate token movements between Terra and other blockchains. This could be beneficial for the company’s restructuring efforts.
However, the range-bound price action and the inability of the OBV to break the July highs indicate that buying volume is not sufficient to support a breakout.
Technical Analysis and Predictions
Technical analysis suggests that LUNC is more likely to experience a downward move in the coming weeks. The liquidation heatmap indicates that the price could be drawn towards the $0.0001 and $0.000063-$0.000071 zones.
Additionally, the negative cumulative liq levels delta suggests that a short squeeze is possible before a move to the range lows.
Short-Term Outlook
In the short term, LUNC could see a price bounce, but it is unlikely to sustain a significant upward movement. Swing traders might find opportunities to sell LUNC during this potential bounce.
Overall, while LUNC has shown some resilience, its inability to break through the range resistance and the negative technical indicators suggest that a price drop is more likely in the near future.