Will Terra Classic Price Drop Below $0.00008?
The price of Terra Classic (LUNC) has experienced a significant reversal, dropping by 27% in just two days to reach $0.000934 from the previous level of $0.000129. This correction has formed a bullish reversal pattern on the 4-hour timeframe chart, indicating a potential risk of further decline in the LUNC price.
The Formation of Bearish Reversal Candle Pattern
- The daily time frame chart for LUNC shows the formation of an evening star bearish reversal candle pattern.
- If the price drops below the 61.8 Fib level at $0.0083, it would trigger a significant correction.
- The intraday trading volume for LUNC is currently $353 million, representing a 43% loss.
Source- Tradingview
In the third week of November, the price of Terra Classic experienced a strong recovery, surging by 86.82% from $0.000069 to a high of $0.000129. This rally was driven by both technical and fundamental factors.
A breakout from the pennant pattern and a surge in USTC Stablecoin following Terra Classic Labs’ strategic investment contributed to this rally.
However, the altcoin struggled to sustain its higher prices and experienced an intraday loss of 6.5%, dipping below the psychological threshold of $0.0001. The 4-hour timeframe chart shows that the LUNC price broke below the neckline support of a bullish reversal pattern known as the Head and Shoulders.
Currently, the LUNC price is trading at $0.000097. If it continues to stay below this neckline support, increased market supply pressure could lead to further correction, potentially reaching $0.0585 and resulting in a 38% loss.
Key Levels to Watch
The ongoing correction in the Terra Classic price has reached the 50% Fibonacci retracement level, which is considered healthy within a long-term bullish trend. It is recommended to monitor the crucial 61.8 FIB level at $0.0083 as it could serve as a pivotal support, encouraging buyers for a strong rebound and preventing further decline.
- Exponential Moving Average: The slope of the 20-day EMA provides additional support for buyers during corrections.
- Relative Strength Index: A potential drop in the daily RSI slope below the 50% midline would indicate a weakening in bullish momentum.
Hot Take: Terra Classic Price Faces Potential Decline
The recent reversal in the Terra Classic (LUNC) price indicates a potential risk of further decline. With the formation of bearish reversal patterns and a break below key support levels, there is increased market supply pressure that could lead to a significant correction. Coin holders should closely monitor the crucial 61.8 FIB level at $0.0083 as it could serve as a pivotal support for a rebound. However, if the price continues to stay below this level, it may reach $0.0585, resulting in a substantial loss. Traders should pay attention to key indicators such as the Exponential Moving Average and Relative Strength Index for further insights into market sentiment and potential price movements.
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