Crypto Market Faces Correction as Terra Classic and Some Others Altcoins Experience Double-Digit Losses
In a recent turn of events, the cryptocurrency market is witnessing a significant correction, with several altcoins experiencing double-digit losses. Terra Classic, in particular, has retraced by 36% from its recent high of $0.000278, now trading at $0.00018 as of Monday. Bitcoin and Ethereum, the two leading cryptocurrencies, are not immune to the market headwinds, facing losses of 3.2% and 3.8%, with prices at $42,356 and $2,246, respectively. Solana (SOL) has lost support at $70, while Cardano (ADA) is exchanging hands at $0.55, down 6.5% in the past 24 hours. Cumulatively, the market cap has contracted by 3%, settling at $1.65 trillion.
Terra Classic Price Retreats Amidst Broader Market Correction
Terra Classic, which recently surged to highs of $0.000278, has experienced a notable retracement of 36%, bringing its current value to $0.00018. This retracement reflects the broader trend in the market, where investors are pulling back and taking profits, resulting in a decline in asset values. Bitcoin and Ethereum considered bellwethers for the cryptocurrency market, have also seen declines of 3.2% and 3.8%, contributing to the overall negative sentiment.
Community-Backed Breakout Faces Correction: LUNC Price Analysis
The Terra Classic community rallied behind a breakout towards the end of November, celebrating the approval of a proposal aimed at revitalizing ecosystem tokens, including LUNC and TerraClassicUSD (USTC). This positive sentiment propelled LUNC from lows around $0.00007 to highs just above $0.00007, drawing attention from traders and investors envisioning a larger breakout towards $1.
However, as is customary in volatile markets, corrections often occur, and profit-taking leads to pullbacks. Despite currently finding support at $0.00018, Terra Classic is facing resistance from the 50 Exponential Moving Average (red) at $0.0001818 and the 21 EMA (blue) at $0.0001933.
Technical Analysis Points to Potential Upside: Bull Flag Formation
Technical analysis reveals a potential bull flag pattern on the four-hour chart, suggesting that a breakout might follow the ongoing consolidation, propelling LUNC 38% to highs around $0.00025. Bull flag patterns typically emerge after a significant uptrend, allowing for a brief consolidation before a potential continuation of the upward movement. For a confirmed breakout, Terra Classic must overcome resistance at the flag’s upper trendline, accompanied by an increase in trading volume to ensure liquidity and momentum support the rally.
Investor Outlook and Bearish Concerns: RSI Signals Caution
While the bull flag pattern presents an optimistic scenario, the Relative Strength Index (RSI) signals caution, standing at 40 after reaching 94 in early December. With LUNC not yet in oversold territory, bears may still have influence, and further declines could occur, possibly bouncing back at $0.00015 ahead of the next potential breakout.
Navigating the Volatility Ahead
As the crypto market experiences a correction, Terra Classic investors are navigating a landscape of both challenges and opportunities. The ongoing consolidation and technical patterns suggest the potential for a bullish breakout, but investors must remain vigilant amidst the uncertainties. The broader market trends, particularly in Bitcoin and Ethereum, will likely continue to impact Terra Classic’s trajectory, making it crucial for investors to stay informed and adapt their strategies accordingly.
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Dr. Olajide Samuel juggles the demands of medical studies with a passion for cryptocurrency. A seasoned blogger, Olajide shares his vast global knowledge of the crypto space, offering insights to enthusiasts. Despite his busy schedule, his commitment to crypto remains strong, and he actively seeks ways to contribute to its future.
