Pattern Observed:
The chart clearly shows a falling wedge pattern, which is typically considered a bullish reversal pattern. This pattern is formed by two converging trendlines — the upper trendline descending and the lower trendline also slightly sloping down, but at a lesser angle.
The price has been compressing within this wedge and is now reaching the tip, indicating an imminent breakout.
Current Situation:
1. Current Price: Around $0.00005634
2. Volume: Starting to pick up, which often precedes a breakout
3. Support Zone: Around $0.00005000
4. Resistance Zone (Breakout Target): Between $0.00007000 to $0.00009000
Possible Scenarios:
Bullish Breakout (High Probability):
1. A breakout above the descending resistance line with volume confirmation could push LUNC toward $0.00007000 to $0.00009000.
2. This is a potential 25% to 60% upside move from current levels.
Bearish Rejection (Low Probability):
1. If price fails to break out and drops below the support at $0.00005000, it could revisit $0.00004500 or lower.
2. Watch for a strong rejection wick to confirm any fakeouts.
Prediction:
Given the technical structure of the falling wedge and the tightening price range, LUNC is likely to break upward in the short term. Watch for:
1. A daily candle close above the wedge
2. An increase in buying volume
If these are confirmed, LUNC could initiate a trend reversal and aim for higher levels.