Disclaimer: The findings of the following analysis are the only opinions of the writer and should not be considered investment advice.
Terra classic saw an expected reversal of its six-week trendline resistance, can it find reliable rebounding grounds? LUNC’s social dominance witnessed a downward trend.
Terra classics [LUNC] The late August recovery laid the groundwork for a solid bull run that pushed the alt toward its ATH following the alt’s rebrand.
Here are AMBCryptos price prediction for Terra Classic [LUNC] for 2023-24
This bull phase helped LUNC record growth of over 490% towards the high of $0.0059. However, a retracement has since begun as the alt struggled to swing above the 20 EMA (red).
The recent plunge in price action led to a six-week trendline resistance (white, dashed). The currency could see a short-term setback if this trendline resistance were to rekindle some selling pressure. At going to press, LUNC was trading at $0.00026545.
After compressing in the $0.001015-$0.000086 range for over a month, LUNC broke into a phase of high volatility that brought with it a solid bull run.
At the time of writing, more than 22.2 billion LUNC, or 0.32% of the total supply, has been burned since the implementation of the combustion mechanism. This mechanism helped bolster short-term sentiment in favor of buyers.
Nevertheless, trendline resistance has been eyeing buying rallies for over a month. The bears were quick to undermine the congested bull runs during this time.
Should the sellers close below the 20/50 EMA, LUNC could see a dull phase in the coming sessions.
The drop below the $0.00025 support level could indicate a possible sell signal. In this case, the bears would try to retest the $0.00022-$0.00019 range for a likely rebound.
An immediate or eventual recovery beyond the 20 EMA barriers and trendline resistance would confirm a change in momentum in the near term. These conditions would warrant a strong buy signal. The first major resistance level in this case would be in the $0.00031 region.
A gradual increase in social dominance
After the network collapse in May 2022, LUNC’s social dominance collapsed accordingly. Additionally, the crypto’s dominance has marked a consistent decline over the past two months.
A possible reversal on this front could help the bulls find a rally. Lately, the correlation between these two has been quite high as the chart shows.
On the other hand, an analysis of the long/short ratio across all exchanges revealed a slight lead for sellers over the past 24 hours.
All in all, investors/traders should keep a close eye on Bitcoin’s movement. The latter could potentially influence broader market sentiment.
This post Here’s what LUNC holders can expect from this important level of support
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