On March 3, 2024, @_classiccrypto, a crypto analyst, tweeted that he expects another significant move from LUNC in the coming hours. He based his prediction on two technical indicators: RSI and a flag pattern formation.
The RSI is a technical tool used to gauge an asset’s strength by comparing the average gains and losses of its closing prices over a specific period. A reading of 70 or higher suggests the asset is overbought, while a reading of 30 or lower indicates overselling.
Analyzing Terra Classic’s Potential Breakout
In a recent tweet, @_classiccrypto observed that the RSI for Terra Classic (LUNC) is at a level similar to before its last significant move, suggesting the digital asset might be oversold and primed for a rebound.
I wouldn't be surprised to see another big move from #LUNC in the next few hours. The RSI is down to about the same level that it was before the last big move from 13 to 20. We're also forming a nice flag with a tightening range. A move is brewing. #USTC pic.twitter.com/DOVIZctlm1
— Classic Crypto . BNB (@_ClassicCrypto) March 3, 2024
A flag pattern, a continuation pattern following a strong price move, features two parallel trendlines connecting highs and lows during price consolidation. The initial move is termed the flagpole, while the consolidation phase is the flag itself. @_classiccrypto notes LUNC is forming a flag pattern with a tightening range, hinting at a potential breakout.
While technical analysis offers insights, it’s not infallible in predicting asset price movements. The analyst’s forecast is based on these technical indicators, but various other factors, including events, regulations, and sentiment, can influence prices. Investors should conduct thorough research before making investment decisions.
Reviving Terra: The Emergence of LUNC
LUNC serves as the native token of the Terra Classic blockchain, previously recognized as Terra. Within this ecosystem, various decentralized applications (dApps) operated, notably featuring the algorithmic stablecoin TerraUSD (USTC).
In May 2022, USTC experienced a loss in its peg to the US dollar. This event sparked a bank run on the Terra blockchain, resulting in the ecosystem’s collapse.
To rejuvenate the project, the Terra community voted to undertake a hard fork of the blockchain. This transformative action birthed a new iteration of Terra known as LUNC, aiming to pave the way for the blockchain’s revival.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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