Luna Classic (LUNC) has increased by nearly fivefold over the past three weeks but has reached an important confluence of Fib resistance levels, which could be the catalyst for a short-term drop.
On Friday, Binance announced that it would launch LUNC futures with up to 25x leverage. The futures will be settled in USDT. This announcement likely comes hot on the heels of a massive price increase of nearly 500% over the past three weeks.
Furthermore, Binance has announced its support for the 1.2% tax burn for LUNC and USTC transactions. The tax burn is expected to go live on Sept 20 at the Terra Classic block height of 9,475,000.
However, it is worth mentioning that spot and margin trading will not be affected by this tax burn implementation. Rather, it will only be valid for deposits and withdrawals.
It is also worth nothing that supply has ballooned to 6.2 trillion since its death spiral. So, despite its incremental value of $0.00045, the coin is ranked #27 by its market capitalization.
Potential LUNC top
LUNC has been increasing since Aug 25. So far, the upward movement has so far led to a high of $0.00059 on Sept 8.
Despite the massive increase, LUNC has reached two important Fib resistance levels. The 4.2-4.61 extension of the initial upward movement (red) and the 1.61 length of waves one and three (white). Therefore, it is possible that LUNC will soon reach or has already reached a top.
This possibility is supported by the RSI has generated bearish divergence (green line), indicating that a downward movement could soon follow.
LUNC did begin to decrease later on Friday and fell to a low of $0.00036, a fall of nearly 40% when measuring from the top. The price did bounce afterwards and created a long lower wick (green icon).
Nevertheless, it seems that the price is mired in an A-B-C corrective structure which could end between the 0.5-0.618 Fib retracement support levels between $0.00028 to $0.00034.
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