- Terra Classic (LUNC) struggles to maintain momentum as bearish sentiment grows, with key support at $0.0001 and resistance at $0.00012.
- Despite an early week rally driven by optimism around Ethereum ETF proposals, LUNC faces declining trading volume and increased selling pressure, risking further drops if support levels fail.
Terra Classic (LUNC) struggles to sustain momentum as bears take control after an early week rally, with two crucial levels at play: $0.0001 support and $0.00012 resistance. The drop in trading volume to $77 million reflects waning investor interest.
Terra Classic Price Analysis: The End Of The Road For Bulls?
In the last 24 hours, Terra Classic has seen a significant 6% drop, reinforcing the growing bearish sentiment. The token reached $0.00012 on Monday, driven by optimism surrounding spot Ethereum ETF proposals. Bloomberg analysts, including Eric Balchunas, increased their ETF approval forecast from 25% to 75%, attributing it to the involvement of influential politicians. This bullish outlook propelled Bitcoin to a new all-time high of $72,000 and Ethereum above $3,700, lifting altcoins like LUNC in the process.
However, mid-week corrections have tempered these rallies, leading to profit-taking among traders and investors who hit breakeven points. As a result, LUNC is trading at $0.0001143 during US business hours on Tuesday. A robust support level is essential to avert further declines.
The 50-day Exponential Moving Average (EMA) aligns with the immediate support at $0.000114. A rebound or a daily close above this level would suggest that bulls still hold some influence. Nevertheless, if the price breaches this support, LUNC could face heightened selling pressure. The Relative Strength Index (RSI) has retraced to 56, indicating that sellers are gaining strength.
If the selling pressure persists, bulls might need to shift their support to the 20-day EMA at $0.0001088 and the crucial $0.0001 demand zone. A fall below these levels could trigger a bearish sentiment, potentially driving the price down to $0.000088 or even $0.00008.
To validate a potential rebound, defending the higher support area at the 50-day EMA is crucial. Traders, however, may wait for confirmation by seeing the price break the 200-day EMA resistance at $0.0001194. Surpassing this key level could shift bullish targets to $0.00016 and $0.0002, possibly igniting a Fear of Missing Out (FOMO) that might push LUNC closer to the $1 mark.
Terra Classic faces a challenging market environment as it navigates between critical support and resistance levels. While the token showed early-week strength, sustained bearish pressure and lower trading volumes suggest that a cautious approach is warranted. Investors will be closely watching for any signs of a breakout or further declines, as the market remains in a state of flux.
