Luna Classic struggles to overcome key resistance: Big drop ahead?

• Terra Luna Classic was rejected from the range highs but could see a price bounce soon.
• The liquidity levels indicated that the token could see a double-digit percentage drop over the next two weeks.

Terra Luna Classic [LUNC] retested the two-month-old range’s highs during the recent rally but was unable to breach the resistance level. It climbed past the mid-range level on the 21st of August when Bitcoin [BTC] jumped above the $60k mark.

The bankruptcy court order in Terraform Labs’ case meant the Shuttle Bridge could be opened to facilitate token movements between Terra and other blockchains. This could help in the company’s restructuring efforts.

The range-bound price action continues

Source: LUNC/USDT on TradingView

Luna Classic has traded within the $0.0000637-$0.0000964 range since early July. Its most recent attempt the break the range highs met with failure. According to the Awesome Oscillator, the momentum was bullish but weakening.

The OBV was unable to break the highs from July, which meant the buying volume was not large enough to boost the chances of a LUNC breakout.

The current market price was still above the mid-range support level. It is unclear if prices can hold this level or will be headed for a deeper price drop. The liquidity charts offered some clues.

LUNC could be headed for the lows, but bears need patience

Source: Hyblock

The liquidation heatmap showed that the $0.0001 and the $0.000063-$0.000071 zones were the next magnetic zones for the price.

Given the range high rejection, AMBCrypto concluded a move downward was more likely over the next week or two.

Source: Hyblock

The cumulative liq levels delta of the past few days has been intensely negative. The conclusion here is that a short squeeze is likely before the move to the range lows can commence.

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The $0.000087 and $0.000091 levels were the short-term bullish targets. Swing traders could use a price bounce to look for opportunities to sell LUNC.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion