As a zone of resistance approaches, LUNC traders should look to trade with the trend

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Last Updated on September 18, 2022 by Bitfinsider

LUNC- 12-Hour Chart

Image from TradingView

For LUNC’s upward surge in September, Fibonacci retracement levels were drawn. Earlier this week, the 78.6% retracement level at $0.0003 served as support but gave way to selling pressure. This level has been flipped to support again in the last day’s trading.

In recent days, the bullish order block (cyan box) in the $0.00024 region saw a decent reaction as the price bounced 30% from the lows. However, it quickly approached a resistance zone at the 61.8% retracement level. A bullish order block formed in the first week of September, causing LUNC to rapidly rise from $0.00034 to $0.00059.

This same order block has now been flipped to resistance, and it was expected to serve as a seller’s stronghold once more. As a result, if Terra Classic continues to rise toward $0.00036, a selling opportunity may present itself in the coming days.

Conclusion

The price action indicated that a rejection at $0.00036 was very likely. The lack of selling volume in the previous week suggested that a recovery was possible. The bias would remain bearish until LUNC can break through the $0.00036 level and convert to support.


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