๐ฅ๐ฅ๐ฅ Will #TerraClassic Price Lose $0.00006 Support Amid Market Sell-off?
The #cryptocurrencymarket faced intensified supply pressure this week, driven by a significant Bitcoin correction. Following liquidation events involving Mt. Gox and the German government, Bitcoin's price fell to a four-month low of $53,550.
This bearish trend extended to the #Altcoinmarket , with Terra Classic ($LUNC ) dropping below crucial seven-month support levels, signaling potential further declines.
On the daily chart, Terra Classic has completed a bearish continuation pattern known as a descending triangle. This pattern, typically found in established downtrends, reflects lower highs and suggests the accumulation of bearish momentum, leading to a prolonged correction.
Since early March, the LUNC coin has been in a downtrend, starting from $0.00025. The asset has since plummeted 73.6%, trading at $0.0000673, with its market cap now at $368.7 million.
Recent data from renowned trader Ali (@ali_charts) reveals a dramatic decline in the market's realized net position change, dropping from over $110 billion in March to just $20 billion today. This indicates substantial capital outflows in recent months.
Given the ongoing selling pressure, LUNC's price could potentially drop another 22% to reach the August 2023 low of $0.000052.
However, the daily chart also shows a long-tail rejection, suggesting that buyers are defending lower price levels. For buyers to regain control, a breakout above the resistance trendline is essential.
Technical Indicators:
- Bollinger Bands (BB): The declining price is testing the lower support trendline, indicating that selling momentum remains strong.
- Relative Strength Index (RSI): The daily RSI is approaching the oversold region, which might attract dip buyers seeking discounted entry points.
Source - coingape.com
