As a seasoned crypto investor, I’ve seen my fair share of market volatility and corrections. The recent bearish trend in June has been particularly challenging for many altcoins, including Terra Classic (LUNC). The sharp reversal from $0.000125 to a low of $0.000079 was a tough blow for buyers, but the long-tail rejection candle at $0.000086 indicates that they are not giving up yet.
Expert: The cryptocurrency market took a turn for the worse in June, causing Bitcoin and Ethereum to reach their lowest points in a month at $64,000 and $3,350 respectively. This market slump negatively impacted Terra Classic as well, leading to a significant decline from $0.000125 to a low of $0.000079. The question remains: will buyers be able to make a comeback by the end of June or will the downward trend continue?
Will LUNC Eyes Major Reversal With this Range Breakout
Over the past two months, I’ve noticed that Terra Classic’s coin price has been bouncing between two stable levels at around $0.000122 and $0.000086 on the chart. Each time the price dipped to these levels, it rebounded without any clear signs of significant buying or selling pressure from the market. In other words, neither buyers nor sellers seemed eager to take control of this asset’s direction.
In the aftermath of the latest market downturn, the value of LUNC dipped as low as $0.0000868. Buyers have been holding the line at this price level, with a significant rejection candle emerging on Tuesday at $0.000086, suggesting their determination to protect it as a potential support point.
According to the latest development, proposal 12114 in the Terra Luna Classic (LUNC) community has received an impressive approval rate of over 98%. This approved revision to the LUNC burn tax distribution will see a significant shift in the allocation of the 0.5% burn tax. Beginning mid-July, 80% of this tax will be dedicated to burns, while the remaining 20% will be distributed between the Community Pool and Oracle Pool. This update may result in reduced immediate block rewards but could lead to enhanced staking rewards over time.
The progress made in this area is expected to bring about a gradual and consistent increase in the price of Terra Classic. By offering enhanced incentives for staking, we hope to draw in investors with a long-term outlook. Additionally, the plan to burn 80% of the accrued taxes has the potential to decrease the token’s supply, which could lead to an uptick in its value.
The expected turnaround from the bottom of the price range could cause LUNC to rise by approximately 37% and test the $0.00012 resistance level. Nevertheless, for a clear directional trend to emerge, LUNC must first break out of the resistance sustainably with a daily closing price above it.
After breaking out from its previous resistance level, this altcoin could potentially surge towards the near-term objective of $0.000173. Following this initial rally, there’s a strong possibility for an extended upswing that may push the price up to $0.00025.
If the overhead supply continues, the altcoin may extend its consolidation period by another week or even several months.
Technical Indicator
- BB Indicator: The lower band on the Bollinger band challenged downward with the falling price indicating the high momentum selling pressure in the market.
RSI: The daily Relative Strength Index slope on the verge of falling below 30% to enter the oversold region could attract dip buyers in LUNC coin.
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2024-06-19 18:02