Following CryptoCom’s delisting announcement, the Terra Classic price has dipped below the pennant pattern, signaling a potential extended correction ahead.
Amid crypto market uncertainty, the Terra Classic price, after a downward shift, is now trading sideways above the $0.0001 level, a key support corresponding to the 78.6% Fibonacci Retracement. This aligns with the formation of a bearish continuation pattern known as a pennant. A recent break from this pattern is expected to amplify market selling pressure.
LUNC Faces Selling Pressure Amid Market Developments
The formation of the Pennant pattern allowed sellers a breather, reinvigorating selling momentum for the declining LUNC price. Potential support levels are identified at $0.0000975 and $0.0000842, with an intraday trading volume of $60.7 million, indicating a substantial 117% loss.
Terra Classic (LUNC) Price| TradingView Chart
Over the past three weeks, Terra Classic’s price exhibited sideways trading above the combined support of $0.0001 and the 78.6% Fibonacci Retracement. This consolidation, encapsulated within converging trendlines, marked the formation of a pennant pattern—a chart pattern recognized for recuperating selling momentum after a brief respite.
However, the asset faced intensified selling pressure as Terraform Labs Pte Ltd (TFL) filed for Chapter 11 bankruptcy in Delaware, United States, and CryptoCom confirmed the delisting of Terra Luna Classic (LUNC). Consequently, the LUNC price experienced a 9% decline today, breaking out from the pennant pattern and the 78.2% Fibonacci level.
The breach of this Fibonacci level suggests waning buyer influence over the asset, with sellers maintaining dominance. A sustained price below the $0.0001 mark may propel a further 15% decline, testing support levels at $0.0000975 and $0.0000842.
Bitcoin vs. Terra Classic (LUNC): Price Dynamics Analysis
In a comparative analysis with BTC, Bitcoin has demonstrated steady and sustained growth over the past six months. In contrast, the LUNC coin has exhibited more volatile price behavior, experiencing a 65% decline from its December peak of $0.00028. This characteristic may make the asset attractive to scalpers but less appealing to risk-averse traders.
The dive in LUNC price below daily EMAs (20, 50, 100, 200) signals a growing bearish sentiment among market participants. Additionally, the Average Direction Index (ADX) slope uptick, reaching 23%, suggests that sellers possess sufficient momentum to lead a prolonged downfall.
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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