Terra Classic’s price recently flashed a bullish signal on the daily time frame chart as USTC stablecoin gained new utility within the Cosmos blockchain. USTC will now serve as collateral for Membrane’s CDT token, providing a new avenue of use and potential growth for Terra Classic. Despite this positive development, LUNC experienced a significant drop of 4.81% over the past 24 hours, trading at $0.00008522. This decline raises questions about the sustainability of the recent bullish signal.

Technical Indicators

Tradingview data highlights a shifting trend for Terra Classic. Previously, the price was confined within a blue-falling channel, indicating a downtrend. However, recent price action suggests a potential reversal as LUNC has broken out of this descending channel. The formation of a bullish pennant, a continuation chart pattern, hints at a possible surge if resolved to the upside. Should this pattern play out, LUNC could aim for a target price of $0.00012.

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Moving Averages and Support Levels

Examining the exponential moving averages (EMAs), Terra Classic is currently trending above the 200-day EMA but below the 50-day EMA. The 200-day EMA provides some support at $0.00008444, while the 50-day EMA offers immediate resistance at $0.00008659. A robust support level of around $0.00007000 could help sustain the price during bearish phases.

Candlestick Patterns and Market Sentiment

The most recent candlestick patterns predominantly consist of dojis, indicating market indecision and a potential reversal. This suggests that buyers and sellers are currently in equilibrium. The preceding breakout from the descending channel adds a bullish bias to this analysis. However, an apparent reversal in the current trend is necessary for the bulls to take control.

The supply and demand indicators currently favour the supply level, showing bear dominance. Despite this, the trading volume has seen a substantial increase of 38.65% in the last 24 hours, indicating an influx of liquidity. If sustained, this influx could support a bullish reversal.

Conclusion

Terra Classic’s price action over the past 24 hours has been marked by significant volatility and mixed signals. The new utility for USTC within the Cosmos blockchain is a positive development, but it has yet to translate into sustained upward price movement for LUNC. Technical indicators suggest a potential for a bullish reversal, but market indecision and current resistance levels pose challenges. Traders should watch for an apparent trend reversal and sustained volume to confirm bullish momentum.