Terra Classic, also known as LUNC, has recently rebounded from a support level around $0.00018. Analysts are eyeing a potential bullish pattern known as a bull flag, suggesting that the cryptocurrency could aim for a breakout to reach $0.00025. This technical analysis indicates a positive momentum for Terra Classic in the near term.
The cryptocurrency market is experiencing a retracement, with several altcoins seeing double-digit declines. Terra Classic’s price, after reaching highs of $0.000278, has retraced by 36%, now trading at $0.00018 on Monday. Bitcoin and Ethereum are also facing downward pressure, losing 3.2% and 3.8% to $42,356 and $2,246, respectively. Solana (SOL) has dropped below $70, and Cardano (ADA) is at $0.55, down 6.5% in the last 24 hours. Overall, the market cap has decreased by 3% to $1.65 trillion.
Terra Classic (LUNC) Community’s Positive Momentum
The Terra Classic community recently showed optimism, supporting a breakout at the end of November. A proposal, aimed at revitalizing ecosystem tokens LUNC and TerraClassicUSD (USTC), gained approval. This propelled LUNC from lows around $0.00007 to highs just above $0.00007, catching the attention of traders and investors anticipating a larger breakout to $1.
Market Dynamics and Corrections: However, as is typical in markets, corrections occurred, driven by profit-taking, especially during bull runs. These pullbacks, while necessary for the uptrend’s continuation, create opportunities for new investors to enter the market, contributing to the momentum for the next move.
Current Status and Potential Breakout: As of now, Terra Classic maintains support at $0.00018 but encounters resistance from the 50 Exponential Moving Average (EMA) at $0.0001818 and the 21 EMA at $0.0001933. A bull flag pattern on the four-hour chart suggests that, following the ongoing consolidation, a breakout might propel LUNC by 38%, targeting highs around $0.00025. This pattern, common after a significant uptrend, allows for a brief pause before bulls push for another breakout.
Terra Classic price chart | Tradingview
Anticipated Breakout for Terra Classic (LUNC)
The Terra Classic community awaits a breakout as the cryptocurrency successfully overcomes resistance at the upper trendline of a bullish flag pattern. For this breakout to materialize, an essential requirement is a simultaneous increase in trading volume. This surge in volume is crucial, providing the necessary liquidity and momentum to support the breakout.
Should LUNC proceed with the expected bull flag breakout, investors could receive an early Christmas gift, and this positive momentum may extend into the new year, potentially supporting gains surpassing $0.0003.
Despite the optimistic scenario, a bearish tone persists, as indicated by the Relative Strength Index (RSI) holding at 40. The RSI had surged to 94 in early December but currently indicates that LUNC is not oversold. This suggests the possibility of further declines, with a potential bounce-back around $0.00015 preceding the next breakout.
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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