The cryptocurrency market has opened the day mixed, and Terra Classic (LUNC) is no exception. Over the past 24 hours, LUNC has shown mild volatility, hovering around $0.000053, with a slight 0.44% decline. Despite the modest gain, the token remains under selling pressure as it trades within a descending channel, indicating that bearish sentiment still dominates the short-term outlook.
However, technical signals suggest a critical juncture for LUNC, as it continues to test a strong support zone between $0.000052 and $0.000053. A decisive breakout or breakdown from this level could determine the token’s direction heading into the weekend.
LUNC Price Action: Testing the Lower Channel Boundary
The 4-hour chart reveals that LUNC continues to move within a downward-sloping channel, reflecting consistent lower highs and lower lows since mid-September. The price has once again approached the lower boundary of this channel, currently supported by the $0.00005263 region, highlighted in purple on the chart.
This zone has acted as a reliable cushion for the past week, preventing deeper declines. A successful defense of this level could trigger a short-term rebound toward the upper channel resistance near $0.0000566. Conversely, if sellers push the price below $0.000052, the next potential target lies around $0.000048, marking a new local low.
EMA Indicators: Bearish Bias Persists
The Exponential Moving Averages (EMA) continue to emphasize LUNC’s bearish market structure.
- 20 EMA (red): $0.00005402
- 50 EMA (orange): $0.00005476
- 100 EMA (green): $0.00005548
- 200 EMA (blue): $0.00005666
All four EMAs are positioned above the current price level, forming a bearish alignment, which typically indicates sustained selling momentum. For the bulls to regain strength, LUNC must reclaim the 50 EMA and establish a candle close above $0.000055, which would signal renewed buying pressure.
Until then, the EMAs continue to act as dynamic resistance levels, with the 200 EMA near $0.0000566 serving as a key threshold that could shift short-term sentiment if breached.’
Related article: LUNC Holds $0.00005395-$0.00005521 Zone After 6% Weekly Drop: Reversal Incoming?
RSI Divergence: Weak Momentum, But Room for Recovery
The RSI Divergence (5,14) currently stands at -3.01, reflecting weak momentum and limited bullish strength. However, RSI readings near oversold zones often precede corrective rallies, particularly when price action nears a support base — as seen with LUNC at $0.000052.
If RSI moves back toward the neutral 50 mark, it may indicate a short-term bounce is underway. Traders should monitor whether momentum builds alongside volume, as this combination often confirms recovery attempts.
Key Levels to Watch
- Immediate Support: $0.00005263 – $0.00005300
- Immediate Resistance: $0.00005476 (50 EMA)
- Major Resistance: $0.00005666 (200 EMA)
- Downside Target: $0.00004800 (lower channel support)
- Upside Target: $0.00005780 – $0.00006291 (breakout range)
If bulls manage to defend the $0.000052 floor and push above $0.000055, it could open the door for a 5–10% upside move within the short term. On the other hand, losing this critical support would confirm a bearish continuation pattern within the descending channel.
Conclusion: Consolidation Before the Next Big Move
In summary, Terra Classic (LUNC) is currently consolidating within a downtrend channel, with prices balancing precariously above a critical support level. While the short-term trend remains bearish, the current setup shows potential for a rebound if buyers defend the $0.000052 range.
However, with EMAs stacked against the bulls and RSI still subdued, caution remains necessary. A breakout above $0.0000566 could mark the start of a recovery phase, but a drop below $0.000052 may signal further downside ahead.
