Terra Classic Coin Analysis: What’s Ahead for $LUNC After 15% Drop?

Terra Classic Coin Analysis: On August 15th, the Terra classic coin witnessed a massive sell-off, recording the lowest value of the day at $0.00006003. It is likely the recent market downturn was triggered by the collective decision of the LUNC community to decline the proposal put forth by prominent member LUNC DAO, aimed to place them in a leadership role within the chain. Amid this downfall, the coin price plunged below the lower trendline of a falling chart setup indicating the coin holders may face further downfall.

Also Read: Bitcoin BRC-20 Bridge Coming To Terra Luna Classic, LUNC & USTC To $1?

Terra Classic Coin Analysis: Key Point 

• A high momentum breakdown below the $0.000075 support hints the LUNC price may extend a downward trend.
• A potential retest to $0.000075 could offer a short-selling opportunity to traders.
• The intraday trading volume in the LUNC coin is $60 Million, indicating a 219% gain.

Source- Tradingview

For over three weeks, the LUNC price consolidated above the $0.000076 support zone reflecting evident uncertainty in the market. However, during the early hours of August 15th, the altcoin witnessed an intraday loss of 24% and a massive breakdown from the aforementioned support.

Losing this monthly support would intensify the selling momentum and project the Terra classic coin is poised for prolonged downfall. However, a closer look at the breakdown candle indicates the buyers recovered a significant chuck of loss by the day’s end.

The long-tail rejection indicates buyers’ active accumulation at a lower price. By the press time, the LUNC price trades at $0.0000678 and hints at the potential of a minor pullback to retest the breached resistance. 

The coin must closely watch the price behavior at the retest area as it would reflect the potential for future moments.

Will LUNC Price Revist $0.00006?

The anticipated pullback in falling LUNC price should face supply pressure at the breached $0.000076 support. If the coin sellers manage to sustain below the newly reclaimed resistance, the coin price could prolong the correction back to $0.00006.

Conversely, if the coin price rises above the breached level with a daily candle closing, the prior breakdown will get invalidated which will fuel a potential rally.

• Bollinger Band: The lower band of the Bollinger Band indicator challenge on the downside reflects aggressive in selling pressure.
• Relative Strength Index: The daily RSI slope at 24% reflects an oversold asset and therefore higher possibility of reversal.