The crypto analyst behind the Cilinix Crypto YouTube channel provided an updated yet uncertain outlook on the embattled cryptocurrency USTC in his latest video released Thursday morning.
While expressing optimism regarding Terra Classic USD’s (USTC) recent bullish momentum which has seen it climb from lows under $0.03 cents to current levels over $0.05 after recently touching $0.07, the analyst cautioned that emerging weakness in correlating asset Luna Classic could foreshadow trouble for USTC.
Luna Classic right now actually seems quite bearish. It seems like it’s going to fall. So you would assume that USTC will fall down as well.
Despite those remarks, the analyst also pointed to positive signs in USTC price action so far, including rising open interest and funding rates.
The trader highlighted the wide trading range that has now developed between resistance around 6.3 cents and support around 4.7 cents. He believes the most prudent move for traders is to wait for a clear breakout above or below these levels before determining the next major directional move.
If USTC breaks above 6.3, then you know that this bullish momentum held up and that there’s momentum and that USTC will probably get up towards 7.5 again. […] On the other hand, if USTC breaks down below 4.7, it will probably drop back down towards 3.5 and 3 cents.
Based on current market signals, the analyst said the odds likely favor an upside breakout and continuation of the nascent bull run. Yet growing correlation with the struggling Luna Classic leaves the door open for a potential bearish reversal if decoupling does not occur.
I would say a bullish breakout is a little bit more likely, but in the end, please just wait for 6.3 to break or 4.7 to break. And then you’ll have your confirmation as to whether USTC will be bullish or bearish.
Source: https://crypto.news/will-ustc-stay-bullish-analyst-weighs-in/