By CoinGape
Cryptocurrencies commenced August negatively due to growing uncertainties from macro factors and intense geopolitical tensions. Terra Classic price reacted by plunging further to $0.000075, mirroring widespread losses witnessed across the altcoin sector, led by Ethereum’s drop to $3,000.
Bitcoin was not immune to the overhead pressure as it extended the correction from $70,000 to support at $62,000. The Nonfarm Payrolls data released in the US on Friday failed to move the market, further casting doubt on the possibility of interest rate cuts in 2024. Investors look forward to the Federal Reserve easing its economic policy to allow breathing space for risk assets like Bitcoin, crypto, and stocks.
What Terra Classic Price Needs To Reach $1
The LUNC futures open interest is bullish ahead of the weekend, with Coinglass data placing it at +0.56. Similarly, the volume in the derivatives market surged by 22%, compelling a bullish outcome.
The LUNC spot market also witnessed a minor spike in trading volume to $16 million, reflecting growing trader interest. Volume and open interest are powerful tools for gauging market sentiment. Rising volume with increasing open interest often confirms a strong trend, while declining both signals potential weakness.
From the four-hour time frame, Terra Classic price has a chance to change the outlook, gearing up for a major trend reversal to $0.0001. The almost oversold Relative Strength Index (RSI) could signal traders to buy the dip, betting on a strong uptrend resurgence.
The immediate support area at $0.000075 taps a longstanding trend line from early June. Traders will look for a breach of the descending channel resistance to ascertain the strength of the uptrend, with near-term targets of $0.000085, $0.00009, and $0.0001.
Conversely, should the RSI fail to break out of the bearish divergence, LUNC price will have difficulty breaking free from the sellers to chart the path to $0.0001. Traders must exercise restraint as Terra Classic recovers due to the high likelihood of increased profit-taking, which may bring up surprise bull traps.
The trend line support must hold; otherwise, more traders will continue to short Terra Classic, forcing an extended decline to $0.000065 and $0.00006.
Frequently Asked Questions (FAQs)
Increasing open interest indicates growing market activity and potential price volatility. It suggests that more traders are taking positions, which can amplify existing trends or signal a potential reversal.
Support at $0.00007 seems solid enough to reignite the uptrend, but it may be too early to rule out an extended correction to $0.00006, especially given the market’s high volatility.
Investors must conduct further research and understand the risks before buying LUNC. The support at $0.000075 stands out as a viable entry with the option to DCA toward $0.00006.
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John Isige
John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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