- Terra Classic experienced an anticipated reversal from a 6-week trend-line resistance. Can it secure dependable rebounding levels?
- Terra Classic’s social dominance recorded a decline.
LUNC’s revival during late August sessions created the stage for a massive bullish move that pushed the altcoin toward all-time highs after the token rebrand. Meanwhile, the bull phase supported LUNC to record a more than 490% surge toward the high at $0.0059.
However, retracement emerged as the crypto battled to sway beyond the 20 Exponential Moving Average. The latest price action dip formed a 6-week trend-line resistance. The alternative token might experience a near-term setback if this trend line resistance renews some selling momentum.
While publishing this content, LUNC changed hands at $0.00026545. Terra Classic dipped into high volatility, following compression at $0.0001015 – $0.000086 for more than a month, welcoming impressive bullish runs. While publishing this content, the platform has burned more than 22.2B LUNC (0.32% of overall supply) since implementing the burning mechanism.
That helped in enhancing the short-term outlook in the buyer’s favor. Nevertheless, the trend line resistance has halted buying action for more than a month. Meanwhile, bears undermined the stretched bullish run within no time.
With a sustained closing beneath the 20-50 Exponential Moving Average, LUNC might witness a dull period during the upcoming sessions. The drop beneath the support level at $0.00025 might indicate a possible selling sign. Such a case would see bears looking to retest $0.00022 – $0.00018 before potential revivals.
An eventual or immediate recovery above the hurdles of the trend line resistance and the 20EMA would confirm a near-term momentum shift. These developments would authorize an enormous buying signal. Meanwhile, such cases would have the initial massive resistance around the $0.00031 zone.
Social Dominance’s Gradual Increase
LUNC saw its social dominance deteriorating after the platform’s debacle in May this year. Moreover, the token’s dominance exhibited consistent declines within the past two months. Potential reversals on this metric might bolster bulls in initiating a rally. Lately, these two have displayed a high correlation, according to the chart.
Meanwhile, analyzing the short/long ratio in exchanges confirmed a slight selling edge within the past day. Nevertheless, investors and traders should watch Bitcoin as its movements could impact broad market cues.