Cryptocurrency News – For almost six weeks, LUNC price witnessed high volatility and formed a short-term sideways trend. During this consolidation period, a rising support trend line acted as a support for buyers, preventing the cryptocurrency from experiencing a significant decline. Recently, this trend line formed the basis of a reverse head-and-shoulders formation, signaling a possible uptrend in the near future.

Chart model points to a rapid 6% bounce

  • The reversal of the bullish pattern prepares the LUNC price for a significant rise.

  • The rising price may face renewed selling pressure around $0.00007.

  • Intraday trading volume on LUNC coin is $35.2 million, indicating a gain of 211%.

While the leading cryptocurrency Bitcoin is facing a pullback from the $27,500 level, the Terra classic coin price also experienced selling pressure, especially around $0.000064. Additionally, the daily chart reveals that this level acts as the neckline for the bullish reversal head-and-shoulders formation mentioned earlier.

This pattern is often seen at market bottoms and usually precedes significant rises. At the time of writing, LUNC price is trading at $0.000069 with an 8% intraday gain. With this bullish rally, the cryptocurrency price made a decisive breakout from the $0.000064 resistance, creating a strong foundation for bullish momentum.

A confirmed breakout could potentially lead to a 6% upside and target the $0.00007 mark. However, this above-mentioned level that shakes the resistance trend line of the channel pattern creates a zone of high supply pressure.

Can the current rise be sustained?

The overall resistance trend line is part of a long-term channel pattern that has dominated the price behavior of this altcoin for more than six months. Given the upcoming bullish activity, investors should be prepared for potential resistance to turn into supply pressure. At this point, failure to break above this trendline could send the coin back to the boundaries of its long-running channel pattern and cause another correction. Therefore, a decisive bullish breakout is essential for LUNC to initiate a sustained recovery.

Bollinger Band: A rise in the upper band of the Bollinger band indicator indicates a high momentum buy.

Relative Strength Index: Daily RSI slope above 60% strengthens recovery sentiment among investors.