Terra Classic LUNC price bearish SFP going down

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:

‘The Swing Failure Pattern is a liquidity engineering pattern, generally used to fill large orders. This means, the SFP generally occurs when larger players push the price into liquidity pockets with the sole objective of filling their own positions.’

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.

Another low market cap coin that announced a 1% token burn this week was Lucky Block (LBLOCK), and news of that also resulted in an explosive pump.

Terra Luna Classic Video Analysis


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