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.

Source: TradingView, LUNC/BUSD

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

Source: Santiment

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.

Source: Coinglass

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

was published first on https://ambcrypto.com/heres-what-lunc-holders-can-expect-from-this-key-support-level/

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