The recent consolidation phase in the LUNC price seems to have found solid ground at the $0.0000825 level. Over the past three weeks, it has rebounded from this point three times, indicating that traders are actively collecting support at this level. This aligns with the formation of a well-known double-bottom pattern in the daily time frame chart when considering the $0.0000825 mark as the basis for support. In relation to Terra Classic’s LUNC token burn for Edward Kim AI Chain’s “Block Entropy” testnet, it is worth examining the implications of the chart patterns.
The LUNC price may continue to display a downtrend until the wedge pattern is no longer intact. A bullish breakout from the pattern’s resistance trendline could act as an indicator of a potential bullish recovery. Currently, the intraday trading volume for LUNC stands at $18 million, which is a 21% loss.
At the time of writing, the Terra Classic coin trades at $0.0000863, with an intraday loss of 0.47%. However, the double-bottom pattern’s influence might lead to sustained buying and an 8.8% surge to challenge the neckline resistance of $0.000094. Successfully flipping this resistance into support would provide buyers with a solid foundation to climb higher.
Following a breakout, LUNC’s market value is expected to rise by another 12% to strike the long-coming resistance trendline of the wedge pattern. This falling wedge pattern represents the current downtrend in Terra coin. Consequently, coin holders should remain vigilant at this dynamic resistance as any signs of reversal could initiate a bear cycle below the current low of $0.00007941.
Assuming the double-bottom pattern continues to develop, the LUNC price is positioned to break through the immediate resistance of $0.0000094. This could intensify buying pressure and lead to a further rally towards $0.0000103 to the downsloping trendline. Overcoming this resistance would be a critical indicator that a sustained recovery in Terra coin is on the horizon.
The Super Trend analysis indicates that the ongoing red film with the LUNC price suggests that sellers still maintain control over the trend. However, the Relative Strength Index showcases evident growth in the daily RSI slope, demonstrating an increase in bullish momentum at bottom support. As always, thorough market research is essential before investing in cryptocurrencies to minimize potential financial losses.
Source: Coingape
