- Terra Classic is up 4% on the day after losing 10% the day prior.
- LUNC could fall by 17% based on technical factors.
- A breach of the $0.00019621 swing high would invalidate the bearish thesis.
Terra Classic continues to show signs of a market reversal. Traders should be on the lookout for a potential 10% to 18% dip in the coming days.
Terra Classic price points south
Terra Classic price is showing exhausted uptrend behavior as the digital currency is consolidating in the $0.0001700 zone. The congestion has been occurring for more than three weeks and is likely to resolve in a volatile thrust in either direction. Furthermore, there are subtle cues in the technicals that suggest the direction will be south.
Terra Classic price currently auctions at $0.0001714 as the bulls have retaliated by 4% following yesterday’s 10% liquidation. Despite the retaliation , the bulls remain suppressed beneath the 8-day exponential and 21-day simple moving averages. The indicators produced a bearish cross the day prior, which catalyzed the 10% drop. The retest and failure to hurdle the crossed indicators is a classic sell signal.
Additionally, the Relative Strength Index (RSI), an indicator used to gauge trend momentum by assessing previous swing points, shows Terra Classic in a peculiar situation. For instance, unlike most cryptocurrencies, such as Bitcoin and Ethereum, the LUNC price never broke out into over-bought territory during January’s rally. Its repression under the 65 level on the RSI suggests it is a part of a counter-trend correction as opposed to the start of a new impulsive rally.
Secondly, the RSI also shows a hidden bullish signal upon the recent low. Traders looking at this indicator may be able to grab a bit more profit but should understand the risk involved. If the overall structure is corrective, there is potential for a liquidation event targeting January’s low at $0.00014098. The bearish scenario creates potential for an 18% decline from the current Terra Classic market value.
LUNC/USDT 1-day chart
The invalidation of the downtrend idea remains the January swing high marked at $0.000019621. A breach of the barrier couldn’t do a rally toward the $0.00020882 liquidity level. The bullish scenario would create a 16% increase from the current Luna Classic price.