• Terra Luna Classic (LUNC) is an underperformer, down 5.5% in the last 24 hours and 20% from its weekly highs.
• Its recent pullback suggests a near-term technical outlook may not be too great, but there is some reason to be optimistic and there may be a short-term rally back to its recent highs.
• The breakout from the downtrend suggests LUNC’s medium-term prospects for early 2023 are looking much better, but it’s still uncertain if it will get back to its September highs.
Terra Luna Classic (LUNC) has been having a rough week in the market, nursing losses of about 5.5% in the last 24 hours and underperforming many of its peers. LUNC/USD was last changing hands in the mid-$0.00014s, down about 20% from its earlier weekly highs above $0.00018, but still up about 15% from monthly lows in the $0.000127 area.
The abrupt turnaround in recent days comes after the cryptocurrency failed to sustain an attempted push to the north of its 200-Day Moving Average. The fact that the cryptocurrency has now dipped under its 21 and 50DMAs as well suggests the near-term technical outlook might not look too great. But there is some reason to be optimistic and, as a result, near-term price predictions shouldn’t be too pessimistic.
LUNC’s latest pullback has seen it fall back to come close to testing a downward trendline that had previously been acting as resistance but may now switch to acting as support. That may be enough to encourage the bulls to re-enter the market and start buying the dip. If so, LUNC could be looking at a short-term rally back to its recent highs in the $0.00018-20 area.
The breakout from the downtrend that had dominated LUNC price action since September suggests that the cryptocurrency’s medium-term prospects for early 2023 are looking much better. Of course, in the absence of a broader crypto market rebound in early 2023, it’s going to be difficult for LUNC to get back to its September highs in the $0.0006 area.
The recent pullback of LUNC has shown that it is possible for the coin to experience a short-term rally. However, the success of this rally will depend heavily on the state of the broader crypto market in early 2023. If the market does indeed experience a rebound, then LUNC could very well experience a strong upside. On the other hand, if the market fails to experience a rebound, then LUNC may continue to experience losses.
No matter how the market turns out, LUNC is still in a good position to experience some upside in the near future. It is important to note, however, that this upside is not guaranteed, and investors should always be careful when investing in any cryptocurrency.