Terra Classic LUNC Price – Bearish SFP, Sell Now?

The old Terra LUNA price chart (now LUNC) has printed a swing failure pattern above the May 30th high, the day that trading resumed on Binance.

The May 30th high was $0.00029. This week the LUNC price has failed to close a daily candle above that level, twice, being rejected and now trading below $0.00025.

Should You Sell LUNC :
The all time high of Terra (LUNA) may have been $119 back in April, but the ATH of the new Terra Classic (LUNC) is just above $0.0003 (hitting $0.00030755 against BUSD on September 2nd).

Since LUNC now has a 6.5 trillion circulating supply (much more than the 350 million before the LUNA and UST crash), its tokenomics have changed.

From a technical analysis standpoint, LUNC failing to close a high timeframe candle (daily or weekly) above $0.00029 – only wicking above then closing below – is a swing failure pattern (SFP).

That could therefore be a reason to sell LUNC, or even short LUNC on leverage. Especially if the LUNC price breaks down below $0.0002, giving more confirmation. As CoinMarketCap explains

Terra Classic Price Prediction :
The first LUNC price target would then be the $0.00015 – $0.00016 region for traders and whales shorting LUNC, having filled their asks.

If LUNC is bullish in the long term with its newly announced 1.2% token burn, a retest of that area to flip it into new support is likely.

Even having corrected to $0.000245 and being down 5.8% in the past 24 hours, the LUNC price is still up around 100% in the past week, not building much support on its impulsive move up.

Traders fortunate enough to have caught the entire move – around a 300% pump from the $0.0001 price level – might consider selling LUNC and either rebuying lower down, or rotating profits into another asset until its clear how much of a bullish catalyst a 1.2% LUNC burn really will be.

When Bitcoin SFP’d its April high of $64k in November – wicking to $69k but failing to really close above (only one weekly candle briefly did) – that led to the downtrend of the past ten months.

The Terra Classic SFP is on a lower timeframe but still worth exercising caution over. Invalidation of the bearish setup would be if LUNC can bounce and close a daily candle or weekly candle above $0.00029.

The LUNC marketcap is currently $1.6 billion ($1.7 billion fully diluted) so it has a deceptively high FDV despite the low price per LUNC token.

One presale we’ve been following is Tamadoge (TAMA) which is now 70% sold out – new crypto presales have more potential upside than altcoins with a valuation over $1 billion.

Like LUNC coin, TAMA is also deflationary with a 5% token burn on certain types of transaction, and will launch later in 2022 with a market cap of only $60 million.