July 16, 2024

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Terra LUNAprice has broken down from an ascending parallel channel and could decrease toward $1.60. Meanwhile, Luna Classic (LUNC) price has broken out from a descending resistance line, initiating a relief rally towards $0.00029.

Terra LUNA Price Breaks Down, Aims For $1.60

Terra LUNA price had been increasing inside an ascending parallel channel since Sept. 26. LUNA price action inside it created an A-B-C corrective structure, in which waves A:C had an exactly a 1:1 ratio (black).  Since the Terra LUNA price increase was corrective, this means that the direction of the trend is downwards. This is also supported by the fact that ascending parallel channels usually contain corrective movements.

As expected, Terra LUNA price broke down from the channel on Oct. 20. Afterwards, it validated it as resistance twice (red icons), on Oct. 23 and 27, respectively. These touches also coincided with the $2.50 horizontal resistance area.

Due to these factors, the continuation of the downward movement is likely, as it has been ongoing for the past 24 hours.

Terra (LUNA) Price breakdown
LUNA/USDT Chart By TradingView

If the downward movement continues, the closest resistance area would be at $1.60. This is a horizontal support area that has been validated five times since June (green icons).

Conversely, a reclaim of the support line of the channel and a daily close above $2.57 (red line) would invalidate the bearish Terra LUNA price prediction. In that case, the LUNA price could increase above $3 once more. Terra price today does not show any signs that such a reversal might occur.

LUNA Price Daily
LUNA/USDT Chart By TradingView

LUNC Price: Short-Term Rally

In a similar fashion to LUNA, the price of Terra LUNA Classic completed an A-B-C (black) upwards structure that led to a high of $0.00038. However, the Terra LUNA Classic price was rejected afterward (red icon) and began decreasing underneath a descending resistance line.

The Terra LUNC price broke out from the line on Oct. 26. Still, it has yet to initiate an upward movement. IF one occurs, it could take the LUNC price towards the 0.382-0.5 Fib retracement resistance area at $0.00028-$0.00030.

Due to the fact that the corrective structure moved upwards, it is likely that the underlying trend is bearish. So, after the short-term rally, the continuation of the decrease is expected. A breakdown below $0.00018 could accelerate the rate of decrease.

Conversely, a daily close above $0.00037 would mean that the trend is bullish instead.

LUNC Price breakout
LUNC/USDT Chart By TradingView

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The post Terra LUNA and LUNC Price: Why Bears Remain in Control appeared first on BeInCrypto.

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