The rollercoaster ride continues in the crypto market. After a brief flirtation with bullish territory following positive US CPI data, profit-taking took hold, erasing most gains. This volatility also impacted Terra’s ecosystem, with LUNC (Terra Classic) and LUNA (Terra) exhibiting contrasting investor sentiment.
LUNC: A Glimmer of Hope Amidst the Downturn
LUNC has had a rough go of it recently, dropping roughly 15.49% over the past week and 5.80% in the last 24 hours. However, a silver lining emerges in the form of a significant 36.96% increase in trading volume, hinting at potential buying activity. Despite the initial upswing sparked by CPI data, LUNC remains firmly in bear territory, down 30% year-to-date.
Currently priced at $0.00009913, LUNC boasts a massive supply, ranking 118th on the global crypto market cap list. Interestingly, technical analysis using the MACD indicator suggests a potential reversal for LUNC. A flattening red histogram hints at a possible bullish convergence in the future, which could signal a price rise. Bulls may aim to retest the resistance level of $0.00012735 if market sentiment improves. However, failing to hold this level could see LUNC fall back towards its crucial support of $0.00009250.
Also Read: Terra Luna Classic (LUNC) Set to Revamp Burn Tax Distribution: What It Means for Investors
LUNA’s Struggle to Find Footing
LUNA paints a bleaker picture. The token continues to hover precariously around its critical support level of $0.5. This lack of movement suggests waning investor confidence. Even the recent market uptick failed to provide lasting support, with LUNA quickly retracing its gains. This rapid reversal highlights the weakness of current buying pressure.
The Relative Strength Index (RSI) for LUNA reflects this, displaying a flat line indicative of stagnation. The bearish curve on the price chart’s average line further reinforces the negative short-term outlook for LUNA. Maintaining a price above $0.5 is crucial for LUNA. Success could pave the way for a retest of the resistance level of $0.7315 within the month. However, a sustained downtrend could result in a breakdown of the critical support level, pushing LUNA towards its next support zone at $0.40.
A Tale of Two Investors: LUNC vs. LUNA
The recent price movements of LUNC and LUNA expose a clear divergence in investor sentiment. While LUNC displays tentative signs of a potential rally, LUNA struggles to gain traction and faces a significant price drop. The coming days will be crucial in determining the short-term trajectory of both tokens within the volatile crypto landscape.
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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