LUNC sheds 37% in 6 days, remains bearish – Wait for THIS before buying!

Terra Classic [$LUNC] witnessed five straight days of red on the price charts. Since the 1st of June, it has receded by 30.82%.

CoinMarketCap data showed a 20% increase in daily trading volume, but it was not enough to send the trading volume above the 20-day moving average.

Despite the recent slump, $LUNC retained a bullish bias on the higher timeframes. Here’s why there is a good chance that buying the altcoin now could yield decent returns in the coming weeks.

$LUNC has not lost its higher timeframe trend yet

Towards the end of May, AMBCrypto reported that the higher timeframe structure was bullish. It was expected that the $0.000087 resistance zone would be breached.

Instead, around that time, Bitcoin began to sink below $75k, shifting its 4-hour trend bearishly. $LUNC bulls faced rejection at the aforementioned resistance and subsequently lost control of the $0.000072 support as well.

Yet, the higher timeframe picture remains bullish for $LUNC. The swing structure hinges on the $0.000035 and $0.000123 levels. At the time of writing, the 78.6% retracement level at $0.000054 has served as a demand zone.

The CMF remained in neutral territory, indicating that the selling pressure was not running out of hand. The OBV agreed with this finding and has only seen a modest dip over the past month.

The momentum was more bearish, as shown by the MACD, which has sunk below the zero line.

The defense of the golden pocket in recent hours of trading was encouraging, but not an automatic buy signal. Bullish traders need to wait for a clear reversal before buying.

Traders’ call to action – Wait

The 1-hour chart has not yet shifted its structure bullishly. As things stand, a move back above $0.0000686 is needed to show that bulls are back in control. This area marked the local highs that need to be breached to bring a structural shift.

Such an H1 shift will also make it easier for swing traders, giving them added clarity on buyer strength and where the invalidation of the bullish setup lies.

Final Summary

• $LUNC’s breakdown below the $0.000072 support came alongside five consecutive red days on the price charts.
• Despite the recent losses, $LUNC remained bullish on the higher timeframes, and swing traders can await a lower timeframe trend shift before buying.