The recent price movement in LUNC/USDT suggests a shift in market sentiment, with bullish momentum building as the pair breaks out of a key resistance zone. This technical development, observed on the 4-hour chart, may indicate the beginning of a short-term upward trend.
1. Market Structure and Price Action
Over the past several days, LUNC has formed an ascending channel pattern, characterized by higher highs and higher lows. This is typically seen as a sign of a healthy uptrend. Price action within the channel remained consistent until the most recent candlesticks pushed through the upper resistance area, suggesting buyers are taking control.
A notable support zone formed between 0.00005500 and 0.00005600, where LUNC found consistent demand. From this level, price steadily climbed, eventually testing and breaking through the 0.00006100 to 0.00006250 resistance area. This level had previously acted as a cap on price, but it now appears to be turning into support.
2. Potential Price Target
With the breakout confirmed, the technical setup points to a possible continuation toward the next key area around 0.00006800. This level corresponds with previous price reactions and represents a logical short-term target if the current momentum continues.
3. What to Monitor Next
A retest of the breakout zone near 0.00006150 would be a healthy sign. If buyers step in again and hold this level, it would reinforce the breakout and support the case for further gains. However, if price falls back below this level and fails to recover, it could indicate a false breakout and a return to the previous range.
Volume confirmation and broader market sentiment, particularly around Bitcoin, should also be considered when assessing the sustainability of the move.
Conclusion
The LUNC/USDT chart currently favors the bulls following a clear breakout from an ascending channel and overhead resistance. If support holds above 0.00006100, there is potential for a move toward 0.00006800 in the near term. As always, traders should remain cautious of volatility and manage risk accordingly.
