Terra Luna Classic Skyrockets 23.3% Despite Long Liquidation and Sentiment
Terra Luna Classic (LUNC) surged 23.3% from its opening to its close on August 10th, drawing attention from market participants. The spike in trading volume indicated a bullish sentiment, with the potential for LUNC to target the range highs. However, the short-term trend of Bitcoin (BTC) and the accumulation of long liquidation levels suggested impending losses and volatility for LUNC.
The daily timeframe showed Terra Luna Classic breaking above the $0.000087 mark, achieving a bullish structure flip and recovering from range lows. The Relative Strength Index (RSI) exhibited a notable increase above the neutral 50, supporting this recovery. However, the On-Balance Volume (OBV) did not show a significant uptick, signalling the need for sustained buying activity. The Directional Movement Index (DMI) indicated an uncertain trend, typical of range formations.
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Overview of LUNC Open Interest
Open Interest (OI) for LUNC dramatically increased from $8 million to $21.1 million, reflecting speculative activity. However, the recent plateauing of OI and a more negative funding rate indicated growing bearish sentiment among traders.
The liquidation heatmap indicated a potential test of the range highs at $0.0001, aligning with technical chart patterns and suggesting a potential bullish movement before a bearish reversal. Positive weighted sentiment online contrasted with muted social volume growth, indicating a lack of widespread excitement that could impede further bullish movements.
The liquidation levels heatmap revealed challenges ahead, showing a significantly positive liquidation levels delta following the price jump, posing a risk for long position liquidations. The mid-range support level at $0.0008 emerged as a short-term target. Whether the bulls can sustain their rally beyond this point depends heavily on Bitcoin’s ability to maintain a price above the $60,000 threshold.
Final Thought
In conclusion, Terra Luna Classic’s recent performance presents both opportunities and challenges. While the bullish flip drove a surge in trading activity, an increase in bearish sentiment and liquidation pressures signal potential volatility ahead. Traders should closely monitor key technical levels and broader market trends, particularly Bitcoin’s price movements, to gauge possible future developments for LUNC.
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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.
