Terra Classic (LUNC), the original chain of the collapsed Terra ecosystem, recently experienced a massive price rally, fueled by a surge in buying pressure, Binance burn, and a broader altcoin recovery.
With LUNC recently reaching new staking and burn milestones and daily volume rising above 700%, the excitement in the community is palpable. However, the path forward is still a source of uncertainty as the token grapples with resistance levels and the threat of a reversal due to the market’s volatility.
Breaking Through but Facing Resistance
LUNC’s price correction initially encountered sturdy support at $0.00009, coinciding with a positive shift in market sentiment. This confluence of factors fueled a bullish double-bottom pattern formation, propelling the token past the critical $0.0001 barrier in early January.
Despite this upward momentum, maintaining the price above this crucial level has proven challenging, raising concerns about a potential false breakout and prolonged correction. The price struggle shows the difficulty buyers face in solidifying control and extending the nascent recovery trend.
Volume Surge Ignites Optimism, But Doubts Linger
The recent breakout from the downtrend line has ignited a fresh wave of optimism, presenting a potential springboard for a sustained recovery. The flipped support of $0.0001 has become a crucial test, needing validation to confirm LUNC’s suitability for a continued upward trajectory.
Although LUNC earlier surged up to 20%, it has dropped 3.30% over the last 24 hours, currently trading at $0.0001048. This decline has caused some doubts, as LUNC is dangerously close to the $0.0001 level.
However, LUNC’s trading volume is still up 52.73% over the last 24 hours, showing heightened interest and enthusiasm from the community for the ongoing rally. Google Bard has also shared bullish predictions for LUNC, and the cryptocurrency still has a chance to bounce back.
Technical Insights Offer Mixed Signals
A closer look at the technical indicators reveals conflicting signals. While the upswing in the lower Bollinger Band boundary offers additional support, the downtick in the Average Directional Index (ADX) slope to 28% suggests a weakening bearish momentum.
This dichotomy highlights the precarious nature of the current price action. A sustained climb above $0.0001 could see bulls aim for higher targets of $0.0001378 and $0.000173. Conversely, a decisive breakdown below this level, particularly breaching the neckline support, could trigger a reversal and send the price plummeting toward $0.000068.
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The Road Ahead
The immediate future of LUNC remains full of uncertainty. While the recent rally and technical indicators offer glimmers of hope, the token faces significant resistance and the possibility of a bearish reversal. However, a prominent figure recently gave the community a target to focus on, signaling that LUNC’s upward journey isn’t over.
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