Over the past three weeks, Terra Classic has experienced a lack of dominance from both bulls and bears, leading to a narrow range formation. This resonates with the broader market uncertainty, as the coin’s price continues to oscillate within the $0.000094 to $0.000082 levels. However, a closer examination of the lower time frame chart reveals that this consolidation phase is characterized by a bearish pattern known as the descending triangle, giving market sellers an extra edge.
The descending triangle pattern is a downtrend continuation pattern that accelerates underlying selling momentum. If the $0.82 neckline support is lost, it could trigger a swift 15% drop in LUNC price. Notably, the intraday trading volume in LUNC coin is $17.1 million, indicating a 5% loss, as seen on Tradingview charts.
During this ongoing consolidation, the LUNC price has bounced off the triangle’s pattern resistance trendline and neckline support at least four times. This reversal highlights the pattern’s influence on market participants, subsequently increasing the likelihood of it determining future trends.
As prices narrow within the triangle structure, selling pressure is expected to intensify over time. Therefore, a potential breakdown below the $0.000082 neckline, accompanied by a four-hour candle closing, may cause the prices to plummet by 15% to touch the $0.00007 mark.
While this bearish outlook appears plausible for LUNC price, a breakout above the overhead trendline can counter the seller’s motives and propel altcoin towards the $0.000094-$0.000098 range. Given the influence of the descending triangle pattern, LUNC price may extend its current downtrend. A bearish breakdown below the $0.000082 support could present a short-selling opportunity for those interested in targeting the next notable support level at $0.00007.
In terms of market volatility, the Bollinger Band indicator’s contraction suggests that an imminent surge in volatility may create a potential trading opportunity for high momentum breakout action. Additionally, multiple crossovers between the MACD (blue) and signal (orange) line reflect indecisiveness amongst traders. It is crucial for investors to conduct thorough market research before venturing into cryptocurrencies, as the author or publication does not assume responsibility for any personal financial losses incurred.
In conclusion, Terra Classic‘s LUNC price is showing signs of a potential downtrend continuation due to the formation of a descending triangle pattern. Market participants should monitor this bearish pattern closely and be prepared for a possible breakdown or breakout, which could substantially impact the coin’s price.
Source: Coingape
