drop that began on 22 July. It showed that the 50% retracement level was within the breaker block. Therefore, a bounce to this region and subsequent rejection would offer a shorting opportunity. But will traders get such a bounce?Source: LUNC/USDT on TradingView
The 4-hour price chart of LUNC showed a bearish structure. The coin has been in a downtrend since February, although the strength of the trend has slowed down considerably after mid-May. At the time of writing, the former support zone, highlighted by the large red box, was slowly being flipped to resistance.
It represented a region of interest on the 1-day price chart. LUNC has bounced multiple times from this zone of support, but losing it would likely mean extended losses for the token. On the 4-hour chart, a breaker block was also identified. The confluence at $0.000084 was worth watching. The RSI has been below neutral 50 on the 4-hour chart since mid-June. This signaled strong bearish pressure in the past six weeks. However, the OBV has climbed higher over the past week, showing some demand was present behind LUNC.