Terra Classic (LUNC) is making headlines as it shows signs of a potential breakout that could send its price soaring. Amidst the broader cryptocurrency market’s volatility and uncertainty, LUNC has emerged as a standout performer, catching the eye of investors with its promising technical indicators and robust on-chain activity.
Technical Indicators Point To A Surge
As of press time, LUNC was trading at $0.00008326, reflecting a modest 0.85% increase in the last 24 hours. However, this subtle rise belies a more significant potential. Analyst Javon Marks has highlighted a key technical pattern: LUNC has broken out of a long-term descending triangle, a classic signal of an impending upward trend.
Marks’ analysis on X (formerly Twitter) emphasized that this breakout could lead to a remarkable surge, with analysts targeting a price of $0.000593—representing a potential gain of over 567% from current levels. The RSI, a crucial momentum indicator, has recently retested and is showing signs of strengthening momentum, further supporting the bullish outlook.
On-Chain Activity Reinforces Bullish Sentiment
The on-chain data adds weight to the optimistic predictions. Daily transaction volumes have surged by 32.46% in the past 24 hours, indicating growing trader interest in LUNC. This uptick in transaction volume suggests that investors are increasingly confident in LUNC’s short-term prospects.
Conversely, the Total Value Locked (TVL) in LUNC remains relatively low at $2.2 million, a significant drop from its historic highs. While this low TVL might raise some cautionary flags, it is essential to note that it does not entirely overshadow the positive signals. The OI-Weighted Funding Rate for LUNC has remained positive, with a rate of 0.0010% as of September 11. This consistency in positive funding rates indicates that long positions are willing to pay fees to maintain their trades, reflecting confidence in LUNC’s upward trajectory.
Also Read: Terra Luna Classic (LUNC) Faces a Massive Burn as TerraForm Labs Winds Down
The Road Ahead – Can the Bullish Momentum Continue?
The breakout from the descending triangle pattern is a critical development for LUNC. The key support level is currently around $0.00008, while resistance is expected near $0.00012. The RSI remains steady above 45, supporting the possibility of a price increase.
In conclusion, both technical and on-chain indicators are aligning to suggest that Terra Classic could be on the verge of a substantial breakout. The next few days will be crucial in determining whether LUNC can sustain this bullish momentum and achieve the anticipated gains. Investors and analysts alike will be watching closely as LUNC navigates this potentially transformative period.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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