The price of Terra Classic ($LUNC ) was trading at $0.0001620 on Friday, marking a 193% increase from its lowest level earlier this year. The cryptocurrency shows potential for further growth in the coming weeks as it exhibits several bullish technical patterns.
One notable development is the formation of a golden cross pattern on November 18, where the 50-day Exponential Moving Average (EMA) crossed above the 200-day EMA. This pattern is historically considered a strong bullish signal in technical analysis. For instance, in October last year, Terra Classic experienced a similar crossover at $0.00013, leading to a surge of 125% to its yearly high of $0.0002795.
Additionally, there are early indications that LUNC is forming a cup and handle (C&H) pattern, with a potential upper boundary at $0.0002795. This pattern, characterized by a rounded bottom and a horizontal resistance line, is widely regarded as a bullish indicator. The C&H formation can take months or years to develop, and in this scenario, it suggests a potential 60% increase to retest the year-to-date high. However, the coin will first need to break above the significant resistance level of $0.0002546, which was last reached in March.
Furthermore, Terra Classic appears to be forming a bullish flag or pennant, both continuation patterns featuring a sharp upward move followed by a period of consolidation. A confirmed breakout above this week’s high of $0.0001794 could signal further upside potential.