Cryptocurrencies commenced August negatively due to growing uncertainties from macro factors and intense geopolitical tensions. Terra Classic price reacted by plunging further to $0.000075, mirroring widespread losses witnessed across the altcoin sector, led by Ethereum’s drop to $3,000.

Bitcoin was not immune to the overhead pressure as it extended the correction from $70,000 to support at $62,000. The Nonfarm Payrolls data released in the US on Friday failed to move the market, further casting doubt on the possibility of interest rate cuts in 2024. Investors look forward to the Federal Reserve easing its economic policy to allow breathing space for risk assets like Bitcoin, crypto, and stocks.

What Terra Classic Price Needs To Reach $1

The LUNC futures open interest is bullish ahead of the weekend, with Coinglass data placing it at +0.56. Similarly, the volume in the derivatives market surged by 22%, compelling a bullish outcome.

The LUNC spot market also witnessed a minor spike in trading volume to $16 million, reflecting growing trader interest. Volume and open interest are powerful tools for gauging market sentiment. Rising volume with increasing open interest often confirms a strong trend, while declining both signals potential weakness.

From the four-hour time frame, Terra Classic price has a chance to change the outlook, gearing up for a major trend reversal to $0.0001. The almost oversold Relative Strength Index (RSI) could signal traders to buy the dip, betting on a strong uptrend resurgence.

The immediate support area at $0.000075 taps a longstanding trend line from early June. Traders will look for a breach of the descending channel resistance to ascertain the strength of the uptrend, with near-term targets of $0.000085, $0.00009, and $0.0001.

Terra Classic price chart | Tradingview

Conversely, should the RSI fail to break out of the bearish divergence, LUNC price will have difficulty breaking free from the sellers to chart the path to $0.0001. Traders must exercise restraint as Terra Classic recovers due to the high likelihood of increased profit-taking, which may bring up surprise bull traps.

The trend line support must hold; otherwise, more traders will continue to short Terra Classic, forcing an extended decline to $0.000065 and $0.00006.

The post Terra Classic Price Set To Reach $0.0001 But LUNC May Flip Bearish After appeared first on CoinGape.

---

Filed under: News - @ August 2, 2024 6:00 pm