Terra Classic (LUNC) continues to face downward pressure, with its price consolidating near $0.00005870 over the last 24 hours. With a slight decline of 1.38%, the token remains trapped in a descending channel, reflecting ongoing bearish sentiment. Traders are questioning whether LUNC has the strength to reclaim higher levels or if the decline could deepen further.
Price Action and Market Structure
The chart shows LUNC moving within a clearly defined descending channel, with consistent lower highs and lower lows marking the trend. This structure indicates sellers are still in control, keeping upward momentum capped. At the same time, the short-term support near $0.00005500 has helped prevent steeper losses, providing a lifeline for the bulls.
If LUNC can break out of this channel to the upside, it could shift sentiment and spark a relief rally. However, failure to hold above current levels may see the price test the lower boundary of the channel.
EMA Signals and Bearish Pressure
The exponential moving averages (EMA 20, 50, 100, and 200) show a bearish alignment, with the 20 EMA ($0.00005875) and 50 EMA ($0.00005910) acting as immediate resistance. The 100 EMA ($0.00005950) and 200 EMA ($0.00005999) are positioned higher, reinforcing the multiple barriers LUNC must overcome before a true bullish reversal can take place.
This setup suggests that the path of least resistance remains downward unless strong buying volume emerges to push the token above these levels.
Related article: Would Terra Classic (LUNC) Ever Experience a Massive Surge Again? A 30% Breakout Awaits Above $0.000066
RSI Divergence: A Glimpse of Relief?
The RSI currently reads 4.04, which is slightly positive. While this does not signal a strong bullish reversal, it shows that selling momentum may be slowing down. If the RSI continues trending upward, it could foreshadow a potential breakout from the descending channel.
Still, traders should remain cautious as the indicator alone is not enough to counteract the broader bearish structure.
Key Levels to Watch
In the short term, support at $0.00005500 is critical. A breakdown below this level would open the door for deeper declines, potentially retesting the $0.00005200 zone. On the flip side, a breakout above $0.00005950–$0.00006000 would give bulls breathing space, with the next challenge at $0.00006500.
A sustained close above the 200 EMA at $0.00005999 would be particularly significant, as it could trigger renewed confidence in LUNC’s recovery potential.
The next 24 hours will be decisive for Terra Classic. If the token manages to hold support and chip away at resistance levels, it could stage a minor rebound. However, if bearish pressure persists, the market may see another leg downward.
