A recent fall in the price of Luna Classic (LUNC) has removed the last recognizable support at 0.000227, opening a fast track for a possible free fall that could leave bulls stranded.
By losing up to 25% of its value in the last 24 hours, LUNC may have been on a downturn from which it may not be easy to recover.
The downward plunge has impacted most critical technical indicators and the socio-political factors that have recently pushed markets to the limit.
Among socio-political factors, the mid-term elections in the US introduced negative sentiments around all digital assets. Those who enter and leave the government always have a role to play, particularly in the areas of adoption and regulation of the sector.
We still hold the LUNC we got from day 1. We were never moved off the address.
While this generally has repercussions on the market, LUNC’s current situation might not have enough buffer to absorb an additional shock if things worsen.
Technical indicators are not suitable for LUNC.
Looking at the technical indicators, things need to look more encouraging for LUNC. A sustained upward price movement may be needed for conditions to improve, which could eventually boost investor confidence and keep bulls alive.
The Relative Strength Index (RSI) is oversold, suggesting that buying the decline could be extremely risky. In addition, the Fibonacci projection also does not leave much positive on the LUNC. However, this could change if an upward price movement is maintained above certain vital levels.
The first target for bulls is the 0.00035 region, where the price has made a swing high. A further push above the 0.00027000 regions will increase the bullish momentum and give buyers a target to hold on to.