The price of Terra Luna Classic (LUNC) suddenly fell to $0.00012 from a high of $0.00014, reflecting the ups and downs seen across the entire crypto market this week.
Terra Luna Classic (LUNC) saw a remarkable surge of over 415% in Q4 of last year, peaking at $0.00028 in December. However, this rally was followed by a steep correction, with LUNC dropping by 68% to $0.000087 in January 2024. Profit-taking and market sentiment drove this pullback. Yet, the first quarter has ushered in new market dynamics, notably with the introduction of the Bitcoin ETF.
Terra Luna Classic (LUNC) Price Analysis
Terra Luna Classic (LUNC) has closely followed the trends of Bitcoin and Ethereum in recent weeks, climbing to $0.00014 in February. However, like other assets, it is susceptible to corrections, currently stabilizing at $0.00012.
Ranked 115th in the crypto market, LUNC is down 6.5% today, aligning with Bitcoin’s 2% drop to $51,134. Other altcoins like Solana, Cardano, and Chainlink have also seen declines of 7%, 4%, and 6.2%, respectively.
Some observers note a decrease in LUNC’s trading volume to $56 million, suggesting waning interest among traders. However, this decline isn’t unique to Terra Luna Classic, as the total market has also dipped by 1.8% to $1.95 trillion.
Traders are closely monitoring two key ranges on the chart: the green region, corresponding to the support of the up-trending channel, must be defended to enhance the likelihood of an immediate recovery.
LUNC price chart | Tradingview
Terra Luna Classic (LUNC) Technical Analysis and Market Outlook
On the upside, the red-marked area indicates a stubborn short-term resistance level. The selling pressure intensified when LUNC reached $0.00014, prompting more traders to short the token or close their long positions, adding downward pressure.
The failure to find relief at the middle boundary support of the channel led to an increase in sell orders. Additionally, the bearish crossover in the Moving Average Convergence Divergence (MACD) indicator suggests a challenging week ahead for LUNC. Short positions are likely to remain profitable until the green area support is reclaimed.
Despite the current bearish sentiment, there is hope for an immediate rebound as Terra Luna Classic has previously been accepted back into the ascending channel. However, if losses extend beyond the green band, the 200-day Exponential Moving Average (EMA) at $0.000116 could become a crucial support level.
Monitoring Bitcoin’s price movements is essential, particularly if it dips below $52,000. A swift recovery would indicate a stronger trend reversal towards $54,000, which could positively impact sentiment across the market. A bullish outcome for Bitcoin is expected to stabilize altcoins like LUNC as traders anticipate the next upward move.
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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