$LUNC – Range High Rejection Setup (1H Timeframe)
Market Structure Overview
A recent recovery rally drove price into a prior supply zone near the local range high, where it formed a sharp rejection candle (strong bearish close after testing highs). The failure to sustain above this breakout level indicates weakening bullish momentum and increases the likelihood of a rotation lower, targeting mid-range liquidity pools.
Trade Direction
Short (Bearish bias)
Entry Zone
$0.0000366 – $0.0000372
(Preferred area: near the upper end of the rejected zone or on a retest of the broken level)
Take-Profit Targets
- TP1: $0.0000350 (first liquidity grab / initial downside extension)
- TP2: $0.0000338 (deeper mid-range target)
- TP3: $0.0000324 (extended target toward lower range liquidity)
Stop Loss
$0.0000383
(Placed above the recent high / rejection wick to invalidate the setup on a clean breakout higher)
Key Notes
- This setup relies on the rejection holding and price failing to reclaim the supply zone.
- Monitor for increased volume on downside moves or any signs of absorption at entry levels.
- Current market context (around ~$0.000035–$0.000037 as of early Feb 2026) shows volatility with recent swings between ~$0.000032–$0.000038, aligning with the described range behavior.
Risk management: Use appropriate position sizing (e.g., 1–2% risk per trade based on stop distance). Always DYOR and consider broader market conditions. Good luck! 🚀
Trade Now : $LUNC
