Will Terra Classic Price Lose $0.00006 Support Amid Market Sell-off?

The supply pressure in the cryptocurrency market intensified this week following the Bitcoin correction. Amid the liquidation from the Mt. Gox exchange and the German government, the BTC price to a 4-month low of $53550. As bearish momentum spread to the altcoin market, the Terra Classis Price dropped below 7-month support, to bolster further downfall.

Also Read: BTC Price Slips Under $56,000 As Mt. Gox Wallet Transfers $2.7B In Bitcoins

Terra Classic Price: Capital Outflows Intensify Amid Market Turbulence

An analysis of the daily time frame shows the Terra classic completion of a bearish continuation pattern called a descending triangle. In theory, the technical setup is often spotted in an established downtrend and lower high formation indicates the bearish momentum accumulating for prolonged correction. 

Under the influence of the pattern’s declining trendline, the LUNC coin entered its current correction in early March as the price reverted from $0.00025. The bearish turnaround tumbled the asset 73.6% down to currently trade at $0.0000673, while the market cap fell to $368.7 Billion.

Amid this downfall, the Terra Classic coin recently dropped below the 7-month neckline to provide sellers with another resistance to restrict price recovery. As per the data from Coinglass, the LUNC’s long position holder witnessed $400 Million liquidation in the last 48 hours.

The cryptocurrency market has witnessed significant capital outflows in recent months, as highlighted by renowned trader Ali (ali_charts) in a recent tweet. According to Ali, the market’s realized net position change has plummeted from over $110 billion in March to a mere $20 billion today. 

Also Read: BTC Price Slips Under $56,000 As Mt. Gox Wallet Transfers $2.7B In Bitcoins

Capital continues to exit the #crypto market, dropping from over $110 billion in March to $20 billion today! pic.twitter.com/GhXplfgGlA

— Ali (@ali_charts) July 5, 2024

This dramatic decline underscores the intensified selling pressure and capital flight from the crypto sector.

With sustained selling, the LUNC price could plunge another 22% to hit the August 2023 low of $0.000052.

On a contrary note, the daily chart shows a long-tail rejection indicating the buyers are defending the lower price level. For buyers to regain better control over this asset, a breakout from the resistance trendline is needed.

Technical Indicator

• BB Indicator: The declining price is challenging the lower support trendline, indicating that the selling momentum is still strong.
• RSI: The daily Relative Strength Index slope entering the oversold region could attract more dip buyers looking for discounted entry points