Luna Classic (LUNC) increased by 40% on Monday, continuing the upward movement that began four days earlier.
LUNC initially broke out from a descending resistance line on Aug 23. Previously, the line had been in place since May 17. This was the first bullish sign since the May 13 bottom.
Afterward, the price increased gradually, but picked up its pace on Sept 1, greatly accelerating its rate of increase.
On Sept 5, LUNC reached a high of $0.000035. The high was made right at the 4.61 Fib retracement of the initial upward movement. This is the final resistance level relative to that initial increase.
If the price moves above this level, there would be crucial resistance at $0.00042.
Cryptocurrency trader @Trader1sz tweeted a chart of LUNC which shows an increase to $0.00334.
A closer look at the two-hour chart shows that the price broke out from a symmetrical triangle on Monday. Besides the previously outlined Fib resistance area, the $0.00034 resistance coincides with the 1.61 Fib retracement of the height of the triangle (white).
Furthermore, the six-hour RSI is generating bearish divergence inside overbought territory. So, there is a confluence of resistance levels at $0.00034 and technical indicators are showing weakness.
Where will LUNC go from here?
There has been increasing optimism about the future of LUNC throughout this increase, with some calling for it to go to $1. However, the death spiral that caused the price to decrease by 99.99% also greatly increased its maximum supply, which is currently at 6.2 Trillion.
So, despite its low price, LUNC is still the #204 cryptocurrency ranked by its market capitalization.
In turn, a price of $1 would lead to a market cap of $6.2 trillion, which is roughly six times higher than the entire current cryptocurrency market cap.
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