Cryptocurrencies saw a minor rebound this week, yet bulls are not clearly in control. Terra Luna Classic (LUNC) rose slightly above $0.0001 from a support level of $0.00009, reaching $0.000095 on Wednesday.
Selling Pressure on LUNC
Historical data shows that BTC price has surged following halvings, supported by increased demand for cryptocurrencies. This typically positively influenced other cryptocurrency purchases like LUNC tokens. Terra Luna Classic is rapidly approaching the region where it bottomed out after the major sell-off in 2022. This support level at $0.000054 was successfully tested in October 2023, allowing bulls to take charge and push for a sharp recovery to $0.00028 in December.
According to Fibonacci levels, LUNC has corrected more than the expected retracement from the previous peak at the 0.618 ratio. If this decline continues, Terra Classic could explore below the rising trend line on the daily chart. This move could lead to another wave of liquidity at the $0.000054 level. Although the chart does not strongly suggest buying the dip, transactions near the bottom price could eventually indicate an impending recovery.
LUNC Price Analysis
Furthermore, the relative strength index (RSI) is not in oversold territory but is slowly approaching 30. A breakthrough into the oversold zone could be the bullish signal investors need to start buying from the bottom. On the other hand, despite negative publicity following the Terra Luna collapse, the community has not stepped back from supporting other ecosystem tokens like Terra Classic and TerraClassicUSD.
The Terra Classic community was the main force behind the commendable rally in the fourth quarter. With such support, LUNC could potentially rise above $1 as it strives to regain its former glory. Although cryptocurrencies are trying to recover, uncertainty continues. Terra Luna Classic has not shown a strong uptrend yet, but the community continues to provide support.
