Sahil Mahadik
The Terra classic price forming a bullish reversal pattern could set a prolonged correction; is $0.00008 next?
Published 6 seconds ago
On November 27th, the Terra Classic price underwent a significant reversal, sharply dropping from the $0.000129 level. This downturn resulted in a 27% decrease within a span of two days, now resting at $0.000934. Notably, this correction formed a bullish reversal pattern within the 4-hour timeframe chart, signaling a potential risk of further decline in the LUNC price.
Also Read: Luna Classic (LUNC) Price Soared As Binance Launches USTC Perpetual Contract
Will Terra Classic Price Drop Below $0.00008?
- The LUNC price shows the formation of a bearish reversal candle pattern called an evening star in the daily time frame chart.
- A possible drop below the 61.8 Fib level at the $0.0083 mark would trigger a significant correction
- The intraday trading volume in the LUNC coin is $353 Million, indicating a 43% loss.
Source- TradingviewÂ
During the third week of November, the Terra Classic price observed a robust recovery, surging from $0.000069 to a high of $0.000129, marking an impressive 86.82% growth. This bullish rally stemmed from a combination of technical and fundamental factors.Â
A bullish breakout from the pennant pattern, as Coingape highlighted in a previous article, contributed to this rally, coinciding with a massive surge in USTC Stablecoin following Terra Classic Labs’ strategic investment move.Â
However, despite this news-driven surge, this altcoin struggled to sustain the higher prices and with a 6.5% intraday loss, the prices dipped below the psychological threshold of $0.0001. Examining the 4-hour timeframe chart reveals the LUNC price breaks below the neckline support of the bullish reversal pattern known as the Head and Shoulders.Â
Presently, the LUNC price trades at $0.000097, and should it persist below this neckline support, increased market supply pressure may lead to further acceleration in correction, potentially reaching $0.0585 and marking a 38% loss.
Key Levels to Watch
The ongoing correction in Terra Classic price has dipped to the 50% Fibonacci retracement level, considered healthy within a long-term bullish trend. Analyzing the current recovery trend suggests that a retracement between 50% to 61.8% in LUNC coin is favorable before any subsequent upward movement. As a result, coin holders should monitor the crucial 61.8 FIB level at $0.0083, as it could serve as a pivotal support, encouraging buyers for a strong rebound and preventing further decline.
- Exponential Moving Average: The slope of the 20-day EMA provides added support to buyers during the ongoing corrections.
- Relative Strength Index: A potential drop in the daily RSI slope below the 50% midline would signify a weakening in bullish momentum.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.