Terra Classic (LUNC) has had a rollercoaster ride over the past 24 hours, with price movements indicating both consolidation and potential upside. Despite general market uncertainty, LUNC has shown resilience, bouncing off key support levels and maintaining a relatively stable position with a minor 1.41% decrease. A closer look at the hourly chart reveals critical insights into price dynamics, with moving averages and the RSI divergence playing a vital role in determining the next direction for this token.

Moving Averages Show Struggles for Short-Term Reversal

The chart’s critical takeaway is the Exponential Moving Averages (EMA) alignment. Currently, the 20, 50, 100, and 200-hour EMAs provide a good overview of market sentiment.

The 20-hour EMA (red) is positioned below the 50-hour (orange) and 100-hour (blue) EMAs, signalling that short-term bearish sentiment still dominates the LUNC market. However, the price has been hovering around the 20-hour EMA, suggesting that bulls are attempting to gain control and push higher.

Interestingly, the 200-hour EMA (blue) sits at 0.00008281, acting as a crucial resistance level. A breakout above this point could encourage a further rally toward 0.00008333, where the 100-hour EMA resides. However, failure to overcome this resistance could push LUNC back into a bearish trend.

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RSI Divergence Hints at Possible Upside

Another key indicator on the chart is the RSI (Relative Strength Index) divergence, currently reading 15.51, which is well below the 30 threshold typically associated with oversold conditions. The green divergence indicates that bullish momentum is building, albeit slowly. Traders should monitor this divergence closely as it could signal an impending bullish breakout, especially if the RSI pushes toward the 30-50 range.

Conclusion

Terra Classic (LUNC) remains at a critical juncture. While short-term moving averages suggest continued bearish sentiment, the building RSI divergence hints at potential upside. If LUNC can break through the 200-hour EMA, we could see a short-term rally, but traders should be cautious of strong resistance at 0.00008333. A failure to push through could lead to a bearish reversal, testing the support around 0.00008137.