Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Sellers extended long-term bearish bias.
- Shorts continue to hold sway with a 55.29% advantage.
The lack of optimism around Luna Classic [LUNC] saw its bullish rally on 4 June quickly curtailed to prolong its bearish structure.
Realistic or not, here’s LUNC’s market cap in BTC terms
The market’s healthy gains, led by Bitcoin [BTC] advancement to $27k, did not result in any upside for LUNC at press time. Instead, sellers look to be primed for another downward move.
Bears extend dominance as bullish rebound subdued
Source: LUNC/USDT on Trading View
Luna Classic’s bull run at the start of 2023 was taken as a sign of better things to come for the LUNA spin-off. However, the opposite has been the case. The price rejection at the $0.0002063 resistance level in February ushered in a bearish swing that LUNC is yet to recover from.
Bears swept away multiple support levels with Luna Classic sinking to an all-time low of $0.00007583. A combination of low trading volume and profit-taking at every rally opportunity has kept LUNC firmly in the red.
The announcement of a proposed network upgrade prompted a 35% pump on 4 June. However, the rebound was brief as price was rejected at the $0.0001152 resistance level.
The on-chart indicators highlighted sellers’ dominance. The Relative Strength Indicator (RSI) has remained under neutral 50 for weeks on end. The sharp climb into the overbought zone on 4 June was quickly reversed, returning LUNC to familiar territory. The On-Balance Volume (OBV) maintained its decline and the Moving Average Convergence Divergence (MACD) posted two bearish crossovers on 9 June and 15 June.
With price slowly moving toward the $0.00008115 support level, bears will be looking to extend their shorting gains with a session close under the support level. This could lead to further losses in the long term, as LUNC struggles to find a price bottom.
Read Luna Classic’s Price Prediction 2023-24
Shorts extend leverage in futures market
Source: Coinglass
The exchange long/short ratio data from Coinglass revealed that shorts held the upper hand, dominating the long/short ratio by 55.29%. This highlighted the firm bearish grip on LUNC’s price action.
Similarly, the unstable funding rate showed market speculators were taking a cautious approach toward LUNC. Traders should exercise caution and watch for potential price reactions at the $0.00008115 support level before entering new positions.
Source: Coinglass
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