The Terra Classic (LUNC) market has been on a rollercoaster ride, losing 10.67% of its value in the past 24 hours as the broader cryptocurrency market sheds 6.68%. Amidst this bearish storm, oversold conditions hint at the possibility of a relief rally. But can LUNC capitalize on this opportunity?
A Closer Look at EMA Trends
The bearish dominance in LUNC’s market is clearly reflected in the Exponential Moving Averages (EMA). With the 20 EMA at 0.00010904 trailing below the 50 EMA (0.00011307), 100 EMA (0.00011492), and 200 EMA (0.00011513), the trend strongly favors sellers. These values form a descending sequence that highlights sustained downward momentum.
Source: TradingViewFor any bullish recovery, LUNC must reclaim the 20 EMA and sustain a move beyond the 50 EMA to indicate a shift in market sentiment. Until then, traders can expect bearish consolidation or further declines.
Related article: Terra Classic’s 24-Hour Surge: Signs of a Bigger Breakout?
RSI Oversold Levels: A Bullish Case?
One glimmer of hope lies in the RSI, which currently reads 9.31, a rarely seen level indicative of extremely oversold conditions. Historically, such low RSI values often precede a temporary bounce or relief rally. However, this scenario requires additional confirmation, such as increased buying volume or a positive divergence between RSI and price action.
Support at 0.00010624 has provided a temporary floor for LUNC, but a breakdown could see prices test the 0.00010000 mark. On the upside, the first hurdle lies at 0.00010904 (20 EMA), followed by 0.00011307 (50 EMA). Breaking these levels would indicate a potential trend reversal, but until then, traders should remain vigilant.
Market Sentiment and Broader Impacts
LUNC’s decline aligns with the broader market downturn, with many cryptocurrencies experiencing double-digit losses. Macroeconomic factors and bearish sentiment continue to weigh on the market. However, the extreme oversold conditions seen in LUNC provide a glimmer of hope for a short-term rally.
While the bearish trend persists, the oversold RSI suggests a temporary relief rally is possible. Traders should closely monitor price action near the key support and resistance levels and wait to confirm a trend reversal before making significant moves.
The post LUNC Technical Analysis: Oversold Conditions Offer Hope Amidst Market Gloom as Terra Classic Dips by 10.67% – Massive Uptrend on the Horizon? appeared first on FXcrypto News.
