Disclaimer: The findings of the next evaluation are the only opinions of the author and shouldn’t be thought of funding recommendation.
Terra Traditional [LUNC] noticed enormous volatility on the charts in September. It posted positive aspects of near 150% within the first week of September. Within the following week, the value retraced a superb portion of this transfer upward. What does LUNC maintain over the subsequent week?
LUNC- 12-Hour Chart
Supply: LUNC/USDT on TradingView
A set of Fibonacci retracement ranges have been drawn for LUNC’s skyward surge in September. The 78.6% retracement stage at $0.0003 acted as help earlier this week however succumbed to the promoting stress. Over the previous day’s buying and selling, this stage has as soon as extra been flipped to help.
The bullish order block (cyan field) within the $0.00024 area noticed an honest response in current days as the value bounced 30% from the lows. Nonetheless, it quick approached a zone of resistance on the 61.8% retracement stage. Within the first week of September, a bullish order block shaped which noticed LUNC quickly rise from $0.00034 to $0.00059.
This similar order block has now been flipped to resistance, and it was more likely to act as a vendor’s stronghold as soon as once more. Subsequently, promoting alternative may come up over the subsequent few days if Terra Traditional continued to submit positive aspects towards $0.00036.
Rationale
Supply: LUNC/USDT on TradingView
The indications didn’t present a bullish image both. It was true that the H4 Relative Energy Index (RSI) managed to climb again above impartial 50. But, in doing so, it shaped a hidden bearish divergence. The worth has made a decrease excessive whereas the momentum indicator shaped the next excessive. This growth may see the value react bearishly within the subsequent few days.
The On-Steadiness Quantity (OBV) additionally rose above a help stage from early September, however solely barely so. It has been comparatively flat over the previous week, regardless that the value noticed a pointy decline. This recommended that promoting stress was not as heavy as anticipated, and restoration was a risk.
The Chaikin Cash Circulation (CMF) additionally stayed in impartial territory over the previous week, to as soon as once more spotlight the shortage of serious capital circulate into or out of the market.
Conclusion
The worth motion confirmed there was a robust risk of a rejection at $0.00036. The shortage of promoting quantity previously week recommended a restoration could possibly be potential. Till LUNC can climb previous the $0.00036 stage and flip it to help, the bias would stay bearish.