1. Market Context: What Just Happened
On January 31, 2026, the crypto market experienced a major shock.
- Over $2.56 billion in leveraged positions were liquidated across the market
- Bitcoin dropped sharply to the $74,000 level
- Panic selling and forced liquidations spread across altcoins
Because LUNC is highly influenced by overall market sentiment, price dropped aggressively to around $0.000031 during this event.
This move was driven by macro market stress, not by changes in LUNC fundamentals.
2. The Drop: Why LUNC Fell So Fast
On the four hour chart, several clear technical signals appeared.
- A strong bearish impulse candle formed
- Volatility spiked with long wicks, indicating forced selling
- The breakdown was driven mainly by liquidations, not organic selling
This type of move usually occurs when:
- Traders are over leveraged
- Stop losses and margin calls trigger simultaneously
For beginners:
This was a liquidation driven crash, not a project failure.
3. The Recovery: Why This Is Important
After the drop to $0.000031, LUNC began to recover.
- Price bounced quickly from the panic low
- Selling pressure weakened significantly
- Buyers stepped in consistently
At the same time:
- Bitcoin recovered only to around the $77,000 level
- LUNC did not continue falling
This confirms one important signal.
Selling exhaustion has occurred.
4. Sideways Structure: What the Yellow Box Means
The yellow box on the chart represents consolidation.
Key characteristics:
- Price moving sideways
- Lower volatility compared to the sell off phase
- Buyers and sellers reaching temporary balance
This structure is a classic accumulation range after a strong drop.
For beginners:
- Sideways movement after a crash often means the market is deciding the next direction
- Strong assets usually consolidate instead of continuing to dump
5. Strength Signal: Why LUNC Is Holding Well
Despite Bitcoin still being below recent highs:
- LUNC is not making new lows
- Price is holding above the panic low
- Buyers are actively defending the current range
This behavior suggests:
- Stronger hands are accumulating
- Weak hands already exited during the liquidation event
- Market confidence is slowly rebuilding
In simple terms:
LUNC is showing relative strength compared to the broader market.
6. Key Levels to Watch (Beginner-Friendly)
Based on the current chart structure:
- Support zone: $0.000031 to $0.000034
- Current consolidation range: $0.000035 to $0.000038
- Next resistance level: Near $0.000040
As long as price remains inside this range and does not break down, the overall structure remains healthy.
7. Professional Conclusion
From a professional technical perspective:
- The decline was caused by an external market shock
- LUNC successfully absorbed heavy selling pressure
- Price is now stabilizing and trading sideways
For beginners:
This does not mean an immediate price surge, but it does suggest that the worst panic phase is likely over, with LUNC showing more stability than many market participants expected.
