Rejection From 200-day EMA: Could The LUNC Price Dip Soon?

• LUNC price has dropped by 63% from the recent high.
• LUNC price has been struggling near the key moving averages.

Terra Classic (LUNC) price has been in a bearish trend for the past few months. It has declined by 60% since March. That showed the sellers’ grip. Since May, the LUNC price has been struggling below the 200-day EMA.

Buyers have made many attempts to surpass a significant resistance level of $0.0000950. However, they couldn’t. The Terra Classic price has been climbing by taking the support on the trendline and reaching the primary resistance level.

LUNC Price Has Shaped an Ascending Triangle Over Daily Timeframe

When writing, the LUNC price was trading at $0.0000928 with an intraday loss of 0.63%. The market capitalization was $529.78 Million. Also, the 24-hour trading volume was $26.55 Million.

The Terra Classic price has formed an ascending triangle pattern and was wandering in the breakout territory. A good price rejection was seen from the 200-day EMA which could trigger a bearish trend.

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Buyers might show interest if the price triggers a breakout from the triangle pattern. It would be a good opportunity once the price sustains over the key moving averages. Furthermore, buyers may lead the trend, and a 70 gain can be seen in the next few months.

Alternatively, if the Terra Classic price triggers a breakdown from the triangle, then selling can be seen. As the trend is bearish, a small sale may have a greater impact. Sharp selling can be anticipated once the price loses the $0.0000640 level.

According to the technical indicators, the RSI ranged near the RSI-based moving average, indicating neutral momentum. The LUNC price has slipped below the 200-day EMA, demonstrating the bears’ grip.

The effectiveness of the upcoming burn event has divided the community

On X, members of the LUNC community are discussing the possible impact of an impending burn event on October 31. Out of LUNC crypto’s current total supply of roughly 6 trillion tokens. This burn could undoubtedly cut the circulation supply by 250 billion tokens.

Some community members maintain that such a burn amount cannot impact the token’s price. It is less than 4% of the total supply.

One user said, “Burning 250 billion is almost negligible with 6 trillion in circulation.” “The market cap would need to be $7.5 Trillion for LUNC to reach $1, which seems unrealistic,” another person commented.

According to the sentiment, members are growing less optimistic. They have less confidence about the likelihood of future price increases fueled only by token burning.

Some people are still confident that frequent burns will eventually ease supply pressure. However, others think the token’s value might stay constrained in the absence of significant utility growth.

Terra Classic Price Prediction

The current outlook for LUNC price is one of caution amid its ongoing bearish trend. Despite forming an ascending triangle pattern, the recent rejection from the 200-day EMA raises concerns. The concern is about the potential downward movement.

Suppose the price can break out of the triangle and sustain above the key moving averages. There may be a chance for a bullish reversal, with significant gains possible. However, sharp selling could follow if LUNC falls below the critical support level.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.