A prominent crypto expert on the 3rd of March made a tweet stating that he “wouldn’t be surprised to see another big move from LUNC in the next few hours.” He referred to two technical indicators to help his prediction: the Relative Strength Index (RSI) and a flag pattern formation.
Relative Strenght Index
The RSI is a specialized pointer that determines the relative strength of an asset by contrasting the average gain of closing prices over a specific period to the typical loss of closing prices over a similar period. An RSI reading of 70 or above is mostly viewed as overbought, while a reading of 30 or below is viewed as oversold.
The Analyst went further to mention that the RSI for Terra Classic (LUNC) is down to about a similar level as before the last big move from 13 to 20, proposing that the asset might be oversold and due for a bounce back.
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I wouldn't be surprised to see another big move from #LUNC in the next few hours. The RSI is down to about the same level that it was before the last big move from 13 to 20. We're also forming a nice flag with a tightening range. A move is brewing. #USTC pic.twitter.com/DOVIZctlm1
— Classic Crypto . BNB (@_ClassicCrypto) March 3, 2024
Flag Pattern
A flag pattern on the other hand is a continuation design that forms after a strong price move. It is characterized by two equal trendlines that link the highs and lows of the price consolidation following the underlying move.
The flagpole is the term used to portray the initial price move, while the consolidation period is known as the flag. The analyst recommends that LUNC frame a flag pattern with a tightening range, which could show that a breakout is soon to occur.
Read Also: $1 For LUNC Is Possible After Bitcoin Halving, Here Are What Could Make It Possible
Secure Your Investment Choices
Note that technical investigation isn’t secure enough to anticipate the future price movements of any digital asset. The conclusion of the expert is totally dependent on his interpretation of the two technical indicators referenced previously.
Nonetheless, numerous elements can influence the price of an asset, like the most recent event, regulatory changes, and the sentiment in the market. All things considered, investors ought to continuously explore before going with any venture or investment decisions.