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Analysis

Terra Luna Classic price hiked by <310% in 11 days before falling - What's next?

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Thanks to its healthy market structure, further gains seem possible for LUNC.
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Terra Luna Classic price zooms 310% in 2 weeks - what's next?
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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

  • LUNC rallied more than 300% in two weeks.
  • The market sentiment was bearish due to the recent pullback.

Terra Classic [LUNC] had an enormous rally and a subsequent retracement in the past three weeks. LUNC surged by 310% within two weeks and began to recede on the 4th of December.

Even after the recent losses, the market retained its bullish outlook for the coming weeks.

Plans to restabilize the stablecoin TerraClassicUSD [USTC] kicked off the rally. Technical analysis by AMBCrypto highlighted key support levels to the south for LUNC traders and investors to watch out for.

The Fibonacci levels were likely to play a pivotal role going forward

LUNC falls back to a key support level, but are further losses likely?

Source: LUNC/USDT on TradingView

Based on the rally from $0.00006813 to $0.00028, a set of Fibonacci retracement levels (pale yellow) were plotted. In the past ten days, LUNC faced losses amounting to 42% when it fell to a local low at $0.000162.

However, despite the pullback, the market structure remained bullish, and a move below $0.000113 would be required to flip it bearishly.

The RSI on the one-day chart was still above the neutral 50 mark, but it reflected the weakened bullish momentum in recent days.

The On-Balance Volume also saw a dip as selling pressure climbed. However, the uptrend of the indicator was intact. To the south, the 61.8% and 78.6% retracement levels could be tested.

In that scenario, they would offer a buying opportunity with a clear invalidation.

The market sentiment was subdued as participants waited for a move upward

LUNC falls back to a key support level, but are further losses likely?

Source: Coinalyze

AMBCrypto’s analysis of the Open Interest chart from Coinalyze revealed that market sentiment was weakly bearish. In the past ten days, the OI has fallen alongside prices.

This indicated weak sentiment, and as of the time of writing this trend has not reversed yet.

Is your portfolio green? Check out the LUNC Profit Calculator

The Funding Rate was positive but dwindling, therefore we can conclude that the majority of the market participants were positioned long in anticipation of gains.

Yet, the sentiment was not strong, and an influx of volume could see the momentum pick up.

 

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Akashnath Sumukar works as a Senior Journalist at AMBCrypto. Based in Chennai, India, he has been an avid follower of the cryptocurrency market since Bitcoin’s boom and bust cycle of 2017. A graduate in Chemical Engineering, he is an expert in technical analysis. In fact, Akashnath has a particular interest in reading price charts and predicting how an asset will move over the short and long term. A self-taught trader and as someone who holds cryptos himself, he is always on the lookout for the next opportunity he can possibly capitalize on, while also educating his audience.
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