In the last 24 hours, Terra Classic (LUNC) has posted a 5.91% gain following a sharp drop that saw the price dip below key support levels. After testing the $0.0000350 zone, LUNC has slowly clawed its way back, now trading at $0.0000432 at the time of writing. This minor bounce signals that the bulls are starting to step in, but several technical barriers still need to be overcome before a full recovery is confirmed.
The recent price action in LUNC shows increased volatility, driven by both speculative buying and the broader crypto market’s ups and downs. After a week of fluctuating momentum, LUNC is now seeing renewed interest, but it faces resistance from key Exponential Moving Averages (EMAs). With RSI showing signs of relief, traders will be closely watching for further confirmation of bullish strength.
Key Catalysts Behind the 24-Hour Bounce
LUNC’s price fluctuation can be attributed to market-wide volatility and technical factors. The sharp dip was primarily driven by high levels of selling pressure, possibly from profit-taking after recent rallies in the broader crypto market. However, LUNC found strong support near the $0.000035 region, which helped slow the price drop and set the stage for a rebound.
In the past 24 hours, LUNC’s price has staged a modest recovery, suggesting that the sell-off was more of a healthy consolidation rather than a trend reversal. The rebound is also supported by technical signals, including the RSI divergence (which sits at 17.52), signaling that the market was deeply oversold during the initial plunge.
EMA Analysis: Resistance Remains
The Exponential Moving Averages (EMAs) on the 4-hour chart are signaling that LUNC’s bearish bias is still intact despite the recent recovery. Below are the current EMA levels to watch:
- 20 EMA (red): $0.00004554
- 50 EMA (orange): $0.00004914
- 100 EMA (green): $0.00005269
- 200 EMA (blue): $0.00005500
Currently, LUNC is trading below all of these key EMAs, which suggests that sellers are still in control. The 20 EMA at $0.0000455 is the immediate resistance level to break. If LUNC can break through this barrier, it may aim for the next resistance at the 50 EMA, which aligns closely with the $0.000049 region. Until then, the bulls will need to continue pushing prices higher to reclaim these levels.
RSI: Rebound Shows Signs of Strength
The Relative Strength Index (RSI) is currently at 17.52, which is still in the oversold range but moving higher. This rebound suggests that LUNC is showing signs of relief after the intense selling pressure. Historically, RSI values this low are followed by brief relief rallies as buyers start to take positions.
As the RSI heads toward 30 (the neutral zone), it could indicate the beginning of a more sustained recovery. However, the market remains fragile, and the next 24 hours will be critical to see if this upward momentum can continue or if the price will face another round of selling.
Related article: LUNC Holds $0.0000540 Support: Could a Reversal Toward $0.000062 Be Next Week’s Play?
Levels to Watch
- Immediate Support: $0.00004258
- Immediate Resistance: $0.0000455 (20 EMA)
- Key Resistance: $0.0000491 (50 EMA)
- Next Major Resistance: $0.0000527 (100 EMA)
- Downside Risk: A drop below $0.000042 could trigger further declines towards the next support near $0.0000350.
If LUNC manages to hold above the $0.0000425 support level and break through $0.0000455, we could see a push toward $0.00005 and beyond. Failure to hold support could trigger a deeper correction.
Market Outlook: Can Bulls Sustain Momentum?
LUNC’s short-term outlook appears slightly bullish after the recent bounce, but the EMA resistance still poses a major challenge. The current price action suggests a consolidation phase before further bullish momentum can be confirmed. As long as $0.0000425 holds, LUNC may continue to test higher levels.
However, the next 24 hours will be crucial for LUNC. If the price fails to break above the 20 EMA, the market could retest lower levels once again, with $0.000035 remaining a critical support zone.
