Terra Luna Classic (LUNC) Price Soared 30%: Why a Reversal May Follow
Terra Luna Classic (LUNC) worth lacked clear path for weeks earlier than staging a sharp three-day rally. The sudden surge pushed the token up almost 30% at its intraday peak. However, technical and on-chain indicators recommend the breakout could wrestle to maintain momentum.
The broader crypto market has skilled periodic bursts of volatility. LUNC’s current transfer stands out on account of its pace quite than structural energy. While worth motion turned briefly bullish, underlying metrics point out warning is warranted.
Bitcoin – The Cause Of LUNC’s Rise
The main catalyst behind LUNC’s rally was a surge in buying and selling quantity. Increased speculative exercise drove short-term worth acceleration. At the identical time, LUNC’s correlation with Bitcoin dropped to 0.04, signaling near-complete decoupling.
Such low correlation suggests the token briefly moved independently of BTC. Decoupling phases can appeal to merchants searching for remoted momentum performs. However, related patterns have appeared throughout a number of altcoins lately. These shifts typically replicate short-lived speculative rotations quite than lasting structural change.
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LUNC Is Trapped Under Bearish Pressure
The Chaikin Money Flow indicator reveals a regarding divergence. Despite rising costs over the previous three days, CMF didn’t verify sustained inflows. Capital coming into the market remained subdued relative to cost motion.
A bearish divergence shaped as worth climbed whereas CMF weakened. This sample signifies that purchasing stress didn’t match the rally’s energy. Outflows continued quietly beneath the floor.
Weak influx affirmation raises questions on sturdiness. Without constant capital accumulation, rallies threat reversal. Price actions unsupported by sturdy liquidity typically right as soon as speculative curiosity fades.
Derivatives information provides to the cautious outlook. LUNC’s funding rate at the moment sits in adverse territory. Negative funding indicators dominance of brief positions over longs.
Aggregate funding metrics present merchants are positioning for draw back threat. Elevated brief curiosity can cap upward momentum. If brief bias persists, LUNC could proceed consolidating until pressured liquidations set off a squeeze.
LUNC Price May Not See Much Growth
LUNC rose roughly 20% over the previous three days and surged 30% at its current intraday high earlier than retreating to $0.00004136. The lengthy higher wick on the chart indicators fast profit-taking. Quick distribution at greater ranges restricted additional upside continuation.
Current technical situations current a bearish bias. If promoting stress resumes, LUNC could decline towards $0.00003459. This stage aligns with the 23.6% Fibonacci retracement. A breakdown under $0.00003459 could expose the following assist close to $0.00003236, invalidating the bullish restoration narrative.
On the upside, LUNC remains capped beneath the $0.00004203 resistance, marked by the 61.8% Fibonacci stage. A decisive breakout above this barrier would shift short-term momentum. Flipping $0.00004203 into assist might push the token towards $0.00004530 and doubtlessly greater, invalidating the quick bearish thesis.
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