Journalist
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Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- LUNC rose by more than 300% in two weeks.
- Market sentiment was bearish following the recent pullback.
Terra Classic [LUNC] had a huge rally and subsequent retracement over the past three weeks. LUNC rose 310% within two weeks and started declining on December 4.
Even after the recent losses, the market maintained its bullish outlook for the coming weeks.
Plans to re-stabilize the stablecoin TerraClassicUSD [USTC] started the rally. Technical analysis by AMBCrypto revealed key support levels in the south that LUNC traders and investors should pay attention to.
The Fibonacci levels would likely play a crucial role in the future
Source: LUNC/USDT on TradingView
Based on the rally from $0.00006813 to $0.00028, a series of Fibonacci retracement levels (light yellow) were plotted. Over the past ten days, LUNC faced losses of 42% as it fell to a local low at $0.000162.
However, despite the pullback, the market structure remained bullish, and a move below $0.000113 would be needed to turn it bearish.
The RSI on the one-day chart was still above the neutral 50, but reflected the weakened bullish momentum of recent days.
On-Balance Volume also dipped as selling pressure increased. However, the indicator’s uptrend was intact. In the south, the retracement levels of 61.8% and 78.6% could be tested.
In that scenario, they would provide a buying opportunity with a clear invalidation.
Market sentiment was subdued as participants waited for a rise
Source: Coinalyse
AMBCrypto’s analysis of Coinalyze’s Open Interest chart showed that market sentiment was weakly bearish. Over the past ten days, the OI has fallen along with prices.
This indicated weak sentiment, and at the time of writing this trend has not yet reversed.
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The financing rate was positive, but decreased. Therefore, we can conclude that the majority of market participants were positioned long in anticipation of profits.
Still, sentiment hasn’t been strong, and an influx of volume could increase momentum.
