Amid the market uncertainty surrounding the Bitcoin ETF launch, the Terra Classic Coin price traded sideways for a major portion of January 2024. The daily time chart validates this consolation as the formation of a bearish pennant. A recent breakdown below the triangle’s support hints at the intensifying selling momentum and risk of prolonged downfall.
Can the current market reversal assist the LUNC price regain its value above $0.0001?
Pennant Pattern Breakdown Intensifies the Seller’s Strength
- The correction trend breakdown below 78.6% FIB level reflects the weakening of buyers’ conviction in this asset.
- The Terra Classic coin currently trades at $0.00009972 with an intraday gain of 1.46%
- The intraday trading volume in the LUNC coin is $30 Million, indicating a 7.26% loss.
Terra Classic (LUNC) Price| TradingView Chart
The LUNC coin has been experiencing a downward trend for almost two months, dropping from its peak at $0.0002 to the current trading value of $0.00099. This represents a substantial 64.5% decrease, erasing much of the gains from the rally seen in October and November, and indicating strong selling pressure in this market.
Analysis of the daily time frame charts reveals that the LUNC price has formed a new bearish continuation pattern, known as a Pennant, during its consolidation in January. On the 22nd of the month, there was a significant break from the 78.6% Fibonacci retracement tool and lower trendline of this pattern, suggesting that sellers are gaining momentum to continue the downward trajectory.
Should this bearish trend continue, the coin’s value might drop to $0.00008423, and potentially even to $0.000069, which could result in a further loss of around 30%.
Can LUNC Price Sustain $0.0001?
Since May 2022, the Terra Luna Classic community has successfully burned 95 billion LUNC, marking a significant achievement in their campaign to decrease the circulating supply of LUNC. Currently, there is anticipation for Binance’s LUNC burning mechanism, scheduled for February 1, to help the community reach the impressive target of burning 100 billion LUNC.
If the upcoming token burn assists the coin price breaches above the triangle’s resistance trendline, the bearish thesis will get invalidated and bolster buyers to surge above the $0.00014 mark.
- Bollinger Band: A downtick in the lower boundary of the Bollinger Band indicator reflects aggressive selling in this asset.
- Average Direction Index: A daily ADX slope at 31% reflects the sellers may hit exhaustion in a prolonged downfall.
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