Journalist
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Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- LUNC rallied more than 300% in two weeks.
- The market sentiment was bearish due to the recent pullback.
Terra Classic [LUNC] had an enormous rally and a subsequent retracement in the past three weeks. LUNC surged by 310% within two weeks and began to recede on the 4th of December.
Even after the recent losses, the market retained its bullish outlook for the coming weeks.
Plans to restabilize the stablecoin TerraClassicUSD [USTC] kicked off the rally. Technical analysis by AMBCrypto highlighted key support levels to the south for LUNC traders and investors to watch out for.
The Fibonacci levels were likely to play a pivotal role going forward
Source: LUNC/USDT on TradingView
Based on the rally from $0.00006813 to $0.00028, a set of Fibonacci retracement levels (pale yellow) were plotted. In the past ten days, LUNC faced losses amounting to 42% when it fell to a local low at $0.000162.
However, despite the pullback, the market structure remained bullish, and a move below $0.000113 would be required to flip it bearishly.
The RSI on the one-day chart was still above the neutral 50 mark, but it reflected the weakened bullish momentum in recent days.
The On-Balance Volume also saw a dip as selling pressure climbed. However, the uptrend of the indicator was intact. To the south, the 61.8% and 78.6% retracement levels could be tested.
In that scenario, they would offer a buying opportunity with a clear invalidation.
The market sentiment was subdued as participants waited for a move upward
Source: Coinalyze
AMBCrypto’s analysis of the Open Interest chart from Coinalyze revealed that market sentiment was weakly bearish. In the past ten days, the OI has fallen alongside prices.
This indicated weak sentiment, and as of the time of writing this trend has not reversed yet.
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The Funding Rate was positive but dwindling, therefore we can conclude that the majority of the market participants were positioned long in anticipation of gains.
Yet, the sentiment was not strong, and an influx of volume could see the momentum pick up.