Analysis: Terra Classic (LUNC) Price Approaching a Potential Breakout
Terra Classic, represented by the ticker symbol LUNC, finds itself in a critical position as it trades between two strong factions in the cryptocurrency market. On one side, there are the bulls who are optimistic about the token’s future, while on the other side, the bears remain skeptical. Currently, LUNC is up by a modest 0.7% in the last 24 hours and is hovering around $0.0001921.
Despite the relatively small increase in trading volume, there is growing interest among investors in Terra Classic. The token currently boasts a market capitalization of $1.1 billion and ranks at #101 among all cryptocurrencies according to CoinMarketCap data.
LUNC Price Consolidates Within a Crucial Range
In early March, Terra Classic experienced a significant surge in price, reaching as high as $0.0002547. However, since then, the price has retraced by 37% to $0.0001518 and has struggled to regain momentum.
Currently, LUNC is trading within a crucial range with support at $0.0001847 and resistance at $0.0002010. This range is significant as it represents key Fibonacci ratios – the lower range limit corresponds to the 0.5 Fibonacci ratio, while the upper range limit aligns with the 0.382 Fibonacci ratio.
When looking at a narrower scope on the four-hour chart, it becomes apparent that Terra Classic is trapped between two moving averages – the 50-day Exponential Moving Average (EMA) and the 20-day EMA (represented by red and blue lines on the chart).
Potential Breakout on the Horizon
The ongoing sideways trading within the narrow range indicates that Terra Classic is experiencing a squeeze, which often precedes a larger breakout in the short term.
An analysis of the Bollinger Bands, a technical indicator used to measure volatility, suggests that a tighter squeeze could validate a significant move in LUNC price. If the token successfully retests the lower boundary of the range, it could pave the way for a substantial leap in value.
If LUNC manages to climb above the immediate supply area at $0.0002, it is likely to trigger FOMO (Fear Of Missing Out) among investors. This could result in a rapid surge towards $0.00025 and $0.0003, potentially setting the stage for a parabolic rally that may push the price above $0.001.
Considerations for Investors
When analyzing the daily timeframe, it is worth noting that the Bollinger Bands are expanding, indicating an extended correction may be necessary to test support at $0.00015.
For investors looking to enter or increase their exposure to LUNC, dollar cost averaging can be an effective strategy. This involves regularly purchasing a fixed dollar amount of the token regardless of its price fluctuations. By doing so, investors can take advantage of price dips during bull markets and maximize their return on investment in the long run.
Additionally, it is important to consider key bullish indicators for Terra Classic, such as holding above the 20-day EMA, 50-day EMA, and 200 EMA. These indicators suggest that the downtrend may be invalidated if LUNC maintains support at a higher level around $0.00018.
Hot Take: Terra Classic Poised for a Potential Breakout
Terra Classic’s price is currently caught between two opposing forces, with the bulls and bears battling for control. However, with the potential for a breakout on the horizon, LUNC may be preparing for a significant move in the short term.
Investors should closely monitor key levels of support and resistance, as well as indicators like the Bollinger Bands, to gauge the likelihood of a breakout. By considering these factors and implementing a strategic investment approach, investors can position themselves to capitalize on potential gains in Terra Classic’s price.
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