Terra Classic’s Retracement Reaches Crucial Demand Zone, Offering Potential Support for Bulls Unless BTC Falls Below $27,000.
LUNC’s Prolonged Downtrend Tests Crucial Support at Approximately $0.000060. The Futures Market Exhibited a Bearish Outlook as of the Latest Update.
Following a remarkable rebound in late September, the cryptocurrency market experienced a rapid correction as Bitcoin (BTC) slipped below the $28,000 mark. Notably, Terra Classic (LUNC) witnessed a decline of over 10% from its recent gains, ultimately reaching a pivotal demand zone.
As of the most recent update, BTC was hovering around the mid-range, approximately at $27,100, with an attempt to surpass the $27,500 threshold. If BTC manages to retarget the upper end of the range, which stands at $28,300, there is potential for LUNC to extend its recovery starting from this critical demand zone.
Source: TradingView
Towards the end of September, a noticeable price rejection occurred within the H12 bearish order block (OB) ranging from $0.00006463 to $0.00006805 (indicated in red). This rejection served as confirmation that sellers held the potential to devalue the asset. The bearish OB had maintained its stability since late August, establishing itself as a critical short-term supply area.
Subsequently, the ensuing reversal led to a significant drop of over 10%, causing LUNC’s price to plummet from above $0.0000650 to a crucial demand zone and the weekly bullish OB, situated between $0.00005557 and $0.00006022 (depicted in cyan).
However, the extent of this drop within the demand zone could potentially alleviate if Bitcoin (BTC) does not incur further losses and remains above the $27,000 mark. Under such circumstances, LUNC could mount a recovery and target the supply area around $0.0000650 once more.
In the meantime, the Relative Strength Index (RSI) retreated into the oversold zone, showing no immediate signs of a reversal at the time of this update. This indicated that selling pressure had intensified over the past few days. Additionally, the dip in the On-Balance Volume (OBV) confirmed a decline in demand within the spot market during the same period.
Despite the potential for a reversal at the demand zone, it’s important to note that the Futures market was firmly in a bearish stance at the time of writing. Notably, the Open Interest rates declined from over $2.4 million to below $2.0 million between October 28 and the time of this update on October 4 during the Asian afternoon trading session.
This drop in Open Interest rates highlights a decrease in demand within the Futures market, indicating a prevailing bearish sentiment. Additionally, the continuous decline in Cumulative Volume Delta (CVD) further reinforces the sellers’ dominance over the past few days.
Therefore, closely monitoring Bitcoin’s price movements is essential for gaining better insight into LUNC’s potential direction in the near future.
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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