- Despite the large drop, the market structure remained bullish.
- A retracement to the key demand zone highlighted appeared likely.
Terra Classic [LUNC] noted high trading volume in the past four days. A month previously, the market structure on the higher timeframe chart swayed in favor of the buyers. The bulls have managed to continue the uptrend.
Bitcoin [BTC] continued to trade within the $61k-$63k region. It appeared to be consolidating after the recent rally and was likely to continue. This could see LUNC prices recover as well.
The uptrend saw a setback
Source: LUNC/USDT on TradingView
The Fibonacci retracement levels were plotted based on a rally in November. The 12-hour chart captured the retracement to the 78.6% level, falling just below it before breaking market structure in early February.
Since then, the prices have soared higher and broken above the $0.00014 resistance zone. The past 24 hours’ selling pressure saw LUNC drop to $0.000167.
It could continue its descent to retest the $0.00014 demand zone.
The OBV continued to trend upward, but the selling volume was not enough to send LUNC into a downtrend yet.
The RSI was also at 69, which was firm bullish momentum despite the lower timeframe losses in recent hours.
Sentiment remains predominantly bullish
Source: Coinalyze
AMBCrypto’s analysis of the futures market data on the Binance exchange showed that the crowd remained bullishly biased.
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The Open Interest chart saw a drop alongside the prices, showing long positions being closed. Short sellers were not yet piling in en masse, either.
Although the OI showed sentiment had possibly begun to shift bearishly, the Funding Rate remained firmly positive. Therefore, speculators were still long and strong.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Source: https://ambcrypto.com/lunc-falls-24-after-80-rally-but-dont-hurry-to-sell-just-yet/