The cryptocurrency market witnessed a positive swing recently, with Bitcoin leading the charge after the release of favorable US CPI data. This bullish trend, however, proved short-lived as profit-taking swept across the crypto space, erasing most gains.
Terra tokens, LUNC (Terra Classic) and LUNA (Terra), also experienced this volatility, with their price movements reflecting contrasting investor sentiment.
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LUNC has endured a rough week, dropping roughly 15.49%. In the last 24 hours, the token has also dropped by 5.80%. On the other hand, this decline is accompanied by a significant 36.96% increase in trading volume. Despite the token’s initial upswing fueled by the release of positive CPI data, LUNC remains firmly in bearish territory, reflecting a YTD loss of 30%.
Currently priced at $0.00009913, LUNC boasts a total supply of over 6.7 trillion tokens, translating to a market capitalization of $597.97 million. This positions it at number 118 on the global crypto market ranking.
Technical analysis using the Moving Average Convergence Divergence (MACD) indicator suggests a potential reversal for Terra Classic (LUNC). The red histogram on the MACD is flattening, hinting at a possible bullish convergence in the future. This convergence signifies a potential rise in LUNC’s price.
If the market sentiment improves, bulls may seize the opportunity to retest the resistance level of $0.00012735. Conversely, a bearish turn could see LUNC fall towards its crucial support level of $0.00009250.
LUNA also paints a concerning picture. The token continues to hover around its critical support level of $0.5. This lack of movement indicates waning investor interest in LUNA.
Even the brief bullish surge witnessed in the past day couldn’t be sustained, with LUNA quickly retracing its gains. This rapid reversal highlights the weakness of the current buying pressure.
The Relative Strength Index (RSI) for LUNA reflects this weakness, displaying a flat line indicative of a stagnant price movement. Additionally, the bearish curve on the average line of the price chart reinforces the negative outlook for LUNA in the short term.
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Maintaining a price above $0.5 is crucial for LUNA. If successful, it could pave the way for a retest of the resistance level of $0.7315 within the month. However, a sustained bearish trend could result in a breakdown of the critical support level, pushing LUNA towards its next support zone at $0.40.
The recent price movements of LUNC and LUNA expose a clear divergence in investor sentiment. While LUNC displays tentative signs of a potential rally, LUNA struggles to gain traction and faces the risk of a significant price drop. The coming days will be crucial in determining the short-term trajectory of both tokens.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Times Tabloid is not responsible for any financial losses.
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