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Since its crash, LUNA has split into LUNA and LUNA Classic
This post wants to explorer the future possibilities for LUNA Classic from a TA point of view. The last thing I heard about LUNA Classic development was that they introduced a burn fee for all transactions which has apparently greatly reduced the supply. Yet its "stable coin" Terra is still hovering around 3-4 cents. Since they are tied to each other it seems more difficult for a turn around to happen as it will require tremendous capital to increase the price of either. But this post was about TA... so let's look at it!
The chart I am using is from Binance and is paired to BUSD. It has data from June forward and shows 2 main waves ascending. On closer examination they are fractals of each other. Price has also established a channel in which it will probably continue to move with the top being more ambiguous. Overall there has been a 360% increase in price over 5 months of trading. Of course it is a far cry of the former ATHs, but nevertheless there is some good price action going on.
We can examine these fractals a bit more in detail when we lay a fib channel over it. This would suggest a bottom at the 0.38 ratio (red/yellow transition) which would fit almost perfectly into the chart as we can expect price to retest the supporting trend line.
The price target for the bottom is highlighted in the purple ellipse. From then onwards price could shoot upwards again towards the top resistance trend lines. As stated before there are two main resistances which are shown here:
If price would move in this way, it would be an almost perfect repetition of the first fractal which actually suggests that price could move differently. The obvious divergences could be at the future support or a bigger breakout to the top. The latter scenario seems, however, unlikely as it would already be an 700% increase to the top resistance. While it is very risky trading LUNAC, currently the rewards could be quite great and the charts would suggest an entry in the purple ellipse drawn here.
As a general reminder: Please keep in mind that none of this is official investment advice! Crypto trading entails a great deal of risk; never spend money that you can't afford to lose!
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