Terra Classic Price Analysis As Trading Volume Plunges To $77M: What’s Next For LUNC?
Highlights
- The massive dip in trading volume signals falling investor interest.
- LUNC could drop to $0.0001 to collect more liquify before the next rebound.
- Traders sit in limbo awaiting the decision on Ethereum ETFs’ proposals.
LUNC regained strength earlier in the weak but not enough to form a new trend. The token is still stuck in the same range range for several weeks with support at $0.0001 and resistance at $0.00012. Based on the current Terra Classic price analysis, sideways trading will likely take center stage as the market generally struggles to find direction.
Terra Classic Price Analysis: The End Of The Road For Bulls?
A 6% drop in the last 24 hours undermines the growing bearish sentiment. Terra Classic climbed to $0.00012 on Monday buoyed by a sudden change of heart towards spot Ethereum ETF proposals.
Two Bloomberg ETF analysts, including Eric Balchunas, revised their projection for the ETF approval from 25% to 75%, citing the involvement of high-profile politicians.
Following Bitcoin’s rally to a new all-time high before its four-year halving cycle in January backed by the green light of a bunch of spot BTC ETFs, experts believe another ETF could further shape the bullish outlook for Ethereum price and the crypto market.
The initial rally on. Monday and Tuesday propelled Bitcoin to $72,000 and Ethereum above $3,700. Altcoins like LUNC also steadied their uptrends tapping into soaring bullish sentiment.
However, price rallies cooled down by mid-week paving the way for corrections. The correction in Terra Classic could be as a result of profit-taking among traders and investors who might have hit breakeven points.
Nevertheless, LUNC sits at $0.0001143 during US business hours on Tuesday. A higher support is required to prevent further losses.
The 50-day Exponential Moving Average (EMA) is in line with the immediate support at $0.000114. A rebound or a daily close above this level would imply that bulls still have the upper hand.
Terra Classic could become heavily laden with increasing selling pressure should the price breach the immediate support. With the Relative Strength Index (RSI) retracing to 56, traders can no longer ignore the strong arm of the sellers.
Persistent selling pressure will also force bulls to shift their potential support to the 20-day EMA at $0.0001088 and the crucial $0.0001 demand area. Below these two levels, bearish sentiment might set in allowing for a further drop to $0.000088 and $0.00008.
Defending a higher support area at the 50-day EMA could validate a new rebound but traders may want to wait for a confirmation by breaking the 200-day EMA resistance at $0.0001194.
Above this key level, bullish targets are likely to shift to $0.00016 and $0.0002, possibly igniting FOMO into the bull run that could see LUNC close the gap to $1.
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