Luna Classic (LUNC) increased by 71% in the past 24 hours, recording the highest daily increase since May 14.
LUNC is the failed coin of the Terra ecosystem, which has since been replaced with Luna 2.0. This occurred after a death spiral caused the price of LUNC to decrease by 99.99%.
Since May 12, when it first decreased below $1, the price has failed to initiate any sort of upward movement or create a type of bullish structure. This all changed on Thursday, when LUNC initiated a rapid upward movement.
There does not seem to be a single decisive reason for this.
Rather, it is possible that the efforts of a community focused validator @LUNCDAO in using their $70,000 of yield profits to burn a percentage of LUNC aided in the increase.
Additionally, it is possible KuCoin’s acceptance of the new network upgrade might have given some much-needed positive publicity, directly preceding the current increase.
While there may be several reasons for this unexpected pump, the price action clearly shows the next closest resistance levels and current structure.
LUNC movement
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, it initially increased at a very gradual pace, before greatly accelerating the rate of increase on Sept. 1.
If the upward movement continues, the closest resistance area would be at $0.00042. While the area is likely to cause a rejection, a potential breakout above it would likely accelerate the rate of increase further, due to the lack of resistance above it.
When looking at the short-term movement, LUNC is right at the 3.61 extension of the original increase. In it, it has created a long upper wick (red icon).
However, there are no bearish candlesticks yet. Moreover, the six-hour RSI has not generated any sort of bearish divergence, even though it is overbought.
So, it is possible that the price will increase all the way to the 4.61 extension at $0.00034 before correcting.
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