In a recent analysis, Derek (@kimmyboy2) shared insights on the Terra Classic (LUNC) token, focusing on the critical role of trading volume in the price discovery process. His chart and commentary highlight significant resistance zones and potential price movements, particularly in the context of the LUNA collapse in May 2022.
Volume analysis is crucial in understanding price trends. Derek emphasizes that “analyzing volume patterns can provide valuable insight into the strength and sustainability of price trends.”
By comparing current trading volumes to historical averages, traders can gauge the significance of volume spikes or drops. These unusual trading volumes often signal impending price movements, making the volume a reliable indicator for predicting price turning points.
Volume Analysis of Terra Classic (LUNC)
The chart shared by Derek illustrates the LUNA collapse, showcasing how oscillators and volume patterns correspond with price crashes. This visual representation helps identify areas where significant inventory builds up as prices fall, marking strong resistance and support levels.
Derek identifies three primary resistance zones for LUNC. The first zone, between 0.00026 and 0.00029, shows concentrated trading volume. If this section is recaptured, it could lead to an acceleration phase driven by strong momentum, and these targets are now more feasible following the recent massive LUNC blockchain upgrade.
The second zone between 0.0026 and 0.0027 is where the volume oscillator peaks. Derek describes this as a “waiting section for a very large dumping occurrence,” indicating a likely deep correction.
The third zone, between 0.032 and 0.036, aligns with the final phase of a corrective wave pattern (A, B, C). Derek believes this range represents the cycle’s end, followed by a long period of price convergence and significant adjustments.
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The Vortex Indicator
In the analysis, Derek also references the Vortex indicator to corroborate his findings. The Vortex indicator measures trend strength over 14 periods, using the True Range to calculate directional movement. This technical tool further supports the identified resistance zones and anticipated price behavior.
Derek’s forecast for LUNC is optimistic yet cautious. He is convinced that LUNC will reach the $0.03 zone in the current cycle, but warns of “large and small fluctuations” throughout this rise, which could cause psychological stress for investors.
At press time, LUNC traded at 0.00008908 after a 4.64% drop over the last 24 hours. His advice is to maintain a strong mindset and be prepared for a challenging journey. The market might be volatile, but with the work of the developers, the frequent massive burns by Binance and other sources, and the faith of investors, LUNC can reach these targets.
Disclaimer: This content is meant to inform 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. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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