Is Terra Classic’s 30% Massacre Call To Buy Or Sell?

The bullish crypto market suddenly turned mundane over the weekend accentuated by Bitcoin price plunge from recent all-time highs above $73,000. Altcoins like Terra Classic could not defy the bearish tension, resulting in significant corrections with LUNC price falling by 30% in a week to trade at $0.00013 on Tuesday.

The sell-off from March highs above $0.00025, leaves many investors counting losses. However, for some, this could be the time to scale into Terra Classic and increase long-term returns.

Are Traders Ready To Buy LUNC Price Dips?

Terra Classic price has corrected by a staggering 48% from its highest point in March. The seemingly heavily discounted token boasts an important double-bottom support at $0.00012. This support was relevant in February and helped to steady the commendable rally to $0.000255.

A double-bottom pattern often marks a very sturdy support area. If respected, the breakout that follows tends to be stronger, implying that it might be the right time to strategize by dollar cost averaging (DCA).

Now that the Relative Strength Index (RSI) is easing the tension after hitting the oversold, traders may want to consider buying the dip. As for more conservative investors, it may be prudent to wait until the RSI breaks above the deciding trendline resistance before going all-in on Terra Classic.

The previous day’s opening at $0.00014 is another key level to watch out for. Should LUNC price climb above it, FOMO will likely kick in, sending Terra Classic towards $0.0002.

The position of the RSI in the daily range at 37 and sliding toward the oversold area reckons that LUNC may not have exhausted the downtrend. Therefore, hell could still break lose and Terra Classic tests $0.0001 support before the actual recovery takes shape.

It is worth mentioning that the 200-day Exponential Moving Average (EMA) (the purple line on the chart) is helping to buoy LUNC price, ensuring that further losses are limited.

It is not all gloomy for Terra Classic based on its position above some Ichimoku cloud levels. This indicator shows key demand and supply zones that contribute to shaping price movement.

Buying pressure would be relevant as long as Terra Classic price holds above the Ichimoku cloud. In other words, it is viable to buy the dip while anticipating a breakout above the red and yellow resistance levels.

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John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

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.