Crypto bulls are on the offensive following an eventful event characterized by disclosures of exposure to fallen United States banks. Terra Luna Classic price spiraled massively during the weekend as investors reacted to the messy events surrounding Silicon Valley Bank (SVB) and Signature Bank New York.
On the bright side, support at $0.00012 stood its ground and stopped LUNC from stretching the leg to $0.00012. Experts had predicted the token may sweep through the liquidity at this price level if it slipped beneath the broken support at $0.00014.
A sharp and immediate recovery was also anticipated from the same support area and true to the forecast, Terra Luna Classic aggressively sprung upward on Monday to trade at $0.0001336 at the time of writing.
With an over 167% increase in the 24-hour trading volume to $123 million, LUNC could be suitably positioned to recover the lost ground, bringing $0.00021—the new 2023 high within reach.
Traders often use the increase in volume to gauge the level of interest among investors. In other words, it shows their willingness to accumulate which translates to a stronger momentum behind LUNC.
Assessing Terra Luna Classic Price Technical Outlook
Terra Luna Classic price is gradually easing into a V-shaped recovery that could see it tag $0.0021 in a few weeks – perhaps months. However, the question among investors is, can LUNC price sustain this reflex upswing?
From the daily timeframe chart below, we can deduce that support at $0.00012 secured a lot of liquidity for Terra Luna Classic price and is the main reason for the 10% bullish move.
Still, LUNC appears ready to hit pause and secure another higher support, preferably above $0.0001325 before staging another offensive attack on $0.00014.
The same daily chart brings into the technical outlook a strong falling trendline resistance since early February when Terra Luna Classic price exchanged hands at $0.00021. A recovery attempt in early March failed after tagging the same resistance line.
For that reason, investors should anticipate delays as LUNC closes in on the descending trendline. Given that Terra Luna Classic price breaks above the subsequent hurdle at $0.00014 and consequently the trend line, more would be expected from the bulls as they are likely to capitalize on the momentum for gains targeting $0.00018 and $0.00021.
On the other hand, the trendline coupled with the seller congestion at $0.00014 could easily flip into the new point of control likely to force Terra Luna Classic price to consolidate between $0.00012 and $0.00014 for a few weeks before resolving the next direction to take.
Here’re The Levels to Watch In Terra Luna Classic Price – 4-Hour Chart
The two key levels analyzed in the daily timeframe are still relevant on the four-hour chart. Support at $0.00012 provided liquidity for the bullish move seen on Monday, however, buyers must brace themselves for a stronger challenge at $0.00014.
The 50-day Exponential Moving Average (EMA) (line in red) at $0.0001336 has already slowed down LUNC’s upward momentum. Meanwhile, a daily close above this price level is critical for the continuation of the uptrend.
Investors who are still unsure of LUNC’s ability to uphold the recovery would be waiting for bulls to confirm $0.0001336 as support before they throw their weight behind the project. Such a move is also needed so that confidence in the uptrend stays intact and paves the way for an expanded bullish scope.
That said, Terra Luna Classic price appears comfortably in the bullish camp, supported by a buy signal from the Moving Average Convergence Divergence (MACD) indicator.
Investors are likely to have resolved to buy LUNC as the MACD line in blue flipped above the signal line in red. Movement into the positive region above the mean line at 0.00 will further cement the bulls’ presence in the market.
Some key targets to the upside start with the 50-day EMA. Although tapped already, this level must be confirmed as support for Terra Luna Classic price to keep trending to the north.
The second critical target sits at $0.00014 and may be extrapolated to include the 100-day EMA (line in blue) on the same four-hour chart. Stubbornly bullish traders may want to wait for another spike before closing their positions at this level.
However, the ideal action would be to cash out at the 50-day EMA before placing new buy orders after LUNC affirms its position above $0.0001336. This means, the 100-day EMA would be the second target with a possible entry for gains eyeing the 61.8% Fibonacci retracement level, as highlighted by the 61.8% Fibonacci level at $0.0001532.
If Terra Luna Classic price keeps the uptrend intact above the 200-day EMA (line in purple) investors can begin to acclimatize to an explosive move to $0.00018 and $0.00021, respectively.
On the downside, failure to break above the 50-day EMA would dampen the recovery seen on Monday. Another sweep at the major support at $0.00012 cannot be ruled out, especially with the crypto market likely to face increased contagion from the collapsing United States banks.
Terra Luna Classic Alternatives To Consider Today
If you’re looking for other high-potential crypto projects alongside LUNC, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.