Over the past day, Terra Luna Classic saw a significant rise, breaking major resistance barriers, raising hopes for a potential bullish wave. Although LUNC claimed the title of ‘top gainer’ today, it is now struggling to maintain its upward momentum due to unfavorable signals in the chain. This has led to growing concerns of a sharp decline given the lack of buyers to maintain purchasing interest.
LUNC’s long/short ratio favors bears
After witnessing a trend reversal from $0.000064, LUNC’s price trajectory has raised concerns among traders, many of whom have followed a bearish path. This shift in sentiment is clearly visible as a significant number of traders have opened short positions, anticipating a possible decline in the value of LUNC. Recent data from Coinglass shows that LUNC’s long/short ratio has been on a downward trend, recently hitting a low of 0.7292.
While 42.17% of positions remain bullish, a more substantial 57.83% lean towards the bearish side. This position imbalance indicates increasing bearish sentiment in the market for LUNC. If the majority of traders continue to bet on LUNC’s price increase, it could hamper buying demand.
Furthermore, open interest (OI) has retreated from its peak as a significant number of traders are liquidating their futures positions to capitalize or eliminate the risks of price volatility. Today, OI hit a notable one-month high of $5.07 million. However, it could not maintain this momentum as traders booked profits around this peak.
Currently, the OI has fallen and has reached a low of $4.1 million. This decline indicates a reduced appetite for trading on the LUNC market. Such decreased activity could dampen the altcoin’s volatility and potentially push it back to its breakout point, especially in light of declining buying interest.
What’s next for the LUNC Prize?
LUNC price is currently at robust buying sentiment; however, the bears are trying to defend a rise above $0.000064. However, buyers could retest the breakdown level soon to validate further upside. At the time of writing, LUNC price is trading at $0.0000612, up over 6.7% from yesterday’s price.
On the 4-hour price chart, LUNC price has fallen below the EMA200 trendline and bears are now targeting EMA20. Despite testing the immediate support at $0.00006 several times, the bulls remained strong, indicating that traders are holding their positions in anticipation of a further rise. If the price crosses $0.000065, we can see that the LUNC price is aiming for $0.000073.
The rising moving averages and the RSI below the overbought area indicate bullish momentum. On the bearish side, LUNC’s initial support is at $0.000058, followed by a critical level at $0.000052.