Terra Classic (LUNC) continues to face bearish dominance, with its price remaining trapped below critical moving averages. The past 24 hours have seen little relief for LUNC, as the oversold conditions indicated by the RSI divergence fail to inspire any significant buying pressure.
EMA Alignment Favours Sellers
The 1-hour chart shows the Exponential Moving Averages (20, 50, 100, and 200) positioned in a way that heavily favors the bears. The 20 EMA at $0.00011196 acts as the first barrier, preventing upward movement. Beyond this, the 50 EMA at $0.00011269 and the 200 EMA at $0.00011437 create additional resistance zones.
The alignment of these EMAs, with the 20 EMA below the 50 EMA, confirms a bearish cross—a strong signal of downward momentum. While LUNC attempted to test the 20 EMA, it faced rejection, indicating that buyers lack the strength to reclaim higher levels.
RSI Divergence Indicates Weak Buying Interest
The RSI divergence indicator is at -8.34, highlighting oversold conditions in the market. Despite this, the absence of significant bullish divergence or volume suggests that the downward momentum could continue in the near term. Traders looking for long positions should wait for confirmation of a reversal before entering the market.
Related article: Terra Classic (LUNC) 24 Hours Price Analysis: Consolidation Indicates Potential Movement, Showing a 2.69% Upward Movement
Critical Support and Resistance Levels
Currently, LUNC hovers around $0.00011085, with its immediate support at $0.00011060. A breach of this support would expose the price to the next level at $0.00010800, which could act as a temporary floor.
On the other hand, breaking above the resistance at $0.00011200 and subsequently the 50 EMA at $0.00011269 is crucial for any sustained recovery. The ultimate test lies at the 200 EMA at $0.00011437, a level that would signify a shift in momentum if breached.
Trading Strategy and Long-Term Implications
With bearish indicators dominating the chart, traders should adopt a cautious approach. Short positions remain viable as long as the price stays below the 50 EMA. Any attempt to go long should be backed by clear evidence of a reversal, such as a breakout above the 200 EMA or an uptick in RSI.
In the absence of strong buying activity, LUNC’s price action is likely to remain subdued. For long-term investors, a close watch on the 200 EMA and RSI levels will provide key insights into the potential for a broader recovery.
