In the volatile world of cryptocurrencies, Terra Luna Classic (LUNC) has been making headlines recently as it shows signs of a potential bullish turnaround. After nearly six weeks of high volatility and a sideways trend, LUNC seems to have found its footing, thanks to an ascending support trendline that has been acting as a safety net for buyers.
This trendline played a pivotal role in forming an inverted head-and-shoulder pattern, indicating a possible bullish shift on the horizon. However, the $0.000064 mark has emerged as a significant resistance level on the daily chart, serving as the neckline for this bullish reversal pattern.
If a breakout occurs, LUNC could surge by 6%, setting its sights on the $0.00007 mark. But there’s a catch this level also coincides with the resistance trendline of a longer-term channel pattern that has been influencing LUNC’s price for over six months.
As traders anticipate a potential breakout, they should be prepared for resistance to transform into supply pressure. Failing to breach this trendline could result in LUNC returning to its familiar channel pattern, leading to another correction. Therefore, a decisive bullish breakout is crucial for a sustained recovery.
Despite its recent struggles, LUNC has seen a 1% rise in the past 24 hours, with a 6.5% gain over the week. This uptick follows the acceptance of two significant governance proposals aimed at stopping new USTC mints and burning the Terra Luna Classic stablecoin. These developments have breathed new life into LUNC, which had seen a staggering 79% drop in the past year.
Technical indicators also point towards a potential resurgence. The relative strength index (RSI) had been indicating heavy selling pressure, but it has now shown signs of stabilizing. The short-term support level has strengthened over the past few weeks, suggesting that LUNC may have hit its lowest point and is ready for a rebound.
While these governance proposals have yet to be implemented, they hold the promise of further price gains for LUNC. A breakout could take LUNC to $0.000070 in the coming weeks, with the potential to reach $0.000080 by year-end if positive developments continue.
However, it’s worth noting that LUNC’s overall outlook remains uncertain. Traders seeking more secure options may consider exploring other altcoins with stronger fundamentals and a higher likelihood of rallying in the near future.
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