Terra Luna Classic (LUNC) shows several bearish signs that indicate the downward movement is expected to continue as CEO Do Kwon may soon face extradition.
The LUNC price has decreased below a descending resistance line since Sept. 12. The downward movement led to a low of $0.00013 on Nov. 8. The line caused numerous rejections until now (red icons), the most recent on Dec. 13.
In addition to the descending resistance line, the LUNA Classic price is also facing horizontal resistance at $0.00019 and the daily RSI is below 50 and decreasing. As a result, readings from the daily time frame are decisively bearish.
Even if the LUNC price were to break out, which seems unlikely, the $0.00019 area could provide resistance.
If the downward movement continues, the next closest support would be at $0.00006, created by the 1.61 external Fib retracement resistance of the most recent bounce.
In some interesting LUNA Classic news, Do Kwon, the disgraced founder and CEO of Terraform Labs is evading authorities, reportedly hiding in Serbia. Kwon has been on the run since South Korean authorities issued an arrest warrant after the collapse of the Terra ecosystem.
Since Serbia and South Korea do not have an extradition treaty, it is not yet clear if Do Kwon will be extradited.
Terra LUNA Classic (LUNC) Price Continuation Could Lead to Breakdown
The readings from the six-hour chart support those from the daily time frame, suggesting that the Terra LUNA Classic price is expected to break down.
The LUNC price has traded inside a symmetrical triangle since Nov. 8. While this is considered a neutral pattern, it is coming after a downward movement. LUNC fell over the last 24 hours and is now trading close to the support line of the triangle. As a result, a breakdown from it would be the most likely scenario.
LUNC fell over the last 24 hours and is now trading close to the support line of the triangle. An increase above the Nov. 30 high (red line) of $0.00019 would invalidate this bearish LUNC projection.
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