In the last 24 hours, Terra Classic (LUNC) has experienced mixed market sentiment, with a tug-of-war between bulls and bears. Despite an initial rally, LUNC now hovers near crucial support levels, raising concerns about the token’s ability to sustain its recent gains. Key technical indicators show signs of weakening bullish momentum, and traders should remain cautious as LUNC tests its resilience.

Price Action and Key Levels

LUNC’s price peaked at $0.00008768 earlier today but has since corrected slightly, currently trading at $0.00008760, a 1.76% increase. Although the token attempted to break higher, the resistance at this level has proven strong, and LUNC now finds itself in a consolidation phase.

The 20-period Exponential Moving Average (EMA) of $0.00008732 currently serves as immediate support, but the price has begun to hover close to this level, signalling that buying pressure might be waning. Additionally, the 50-period EMA at $0.00008656 is likely to serve as the next critical support if the token fails to hold the 20-period EMA.

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EMA Patterns Suggest Support Zones

Analyzing the 20, 50, 100, and 200 EMAs provides insight into the ongoing market behaviour. The proximity of the 20-period EMA to the current price suggests that a break below this level could lead to a test of the 50-period EMA, with further downside potential if the price slips toward the 100-period EMA ($0.00008587).

However, as long as LUNC holds above the 50-period EMA, it remains within a relatively strong support zone. Should the token manage to stay above this level, the bulls may still have a chance to regain control and push the price higher. On the other hand, a break below the 100-period EMA could signal a shift toward a bearish outlook.

RSI Divergence Signals Potential Reversal

The RSI Divergence indicator currently shows a value of -1.76, indicating a bearish divergence. This divergence hints that momentum is slowing down, and traders might see some profit-taking or a more significant pullback in the short term. The divergence often precedes reversals, so a cautious approach is recommended as LUNC tests these key levels.

Conclusion

While Terra Classic (LUNC) has maintained its position above critical support, weakening momentum and bearish RSI divergence suggest that the token could face challenges in the near term. A break below the 20-period EMA might spark a broader correction, testing the 50 or 100-period EMAs for further support.