Terra LUNAprice has broken down from an ascending parallel channel and could decrease toward $1.60. Meanwhile, Luna Classic (LUNC) price has broken out from a descending resistance line, initiating a relief rally towards $0.00029.
Terra LUNA Price Breaks Down, Aims For $1.60
Terra LUNA price had been increasing inside an ascending parallel channel since Sept. 26. LUNA price action inside it created an A-B-C corrective structure, in which waves A:C had an exactly a 1:1 ratio (black). Since the Terra LUNA price increase was corrective, this means that the direction of the trend is downwards. This is also supported by the fact that ascending parallel channels usually contain corrective movements.
As expected, Terra LUNA price broke down from the channel on Oct. 20. Afterwards, it validated it as resistance twice (red icons), on Oct. 23 and 27, respectively. These touches also coincided with the $2.50 horizontal resistance area.
Due to these factors, the continuation of the downward movement is likely, as it has been ongoing for the past 24 hours.
If the downward movement continues, the closest resistance area would be at $1.60. This is a horizontal support area that has been validated five times since June (green icons).
Conversely, a reclaim of the support line of the channel and a daily close above $2.57 (red line) would invalidate the bearish Terra LUNA price prediction. In that case, the LUNA price could increase above $3 once more. Terra price today does not show any signs that such a reversal might occur.