Terra Classic (LUNC) continues to face challenges as the cryptocurrency market experiences heightened volatility. Over the last 24 hours, LUNC has failed to sustain any upward momentum, and technical indicators suggest more downside pressure is ahead. The combination of bearish moving averages and a significant RSI divergence underscores the market’s current sentiment. This analysis will break down the technical outlook and potential price action for LUNC.
Bearish Moving Averages Create Strong Resistance
LUNC’s price is currently hovering around $0.0008234, facing strong resistance from the 20, 50, 100, and 200 EMAs. The 20 EMA is at $0.0008853, the 50 EMA at $0.00088606, and the 200 EMA at $0.0009049, all positioned above the current price action. This bearish alignment of the moving averages indicates a continued downtrend as LUNC struggles to build any momentum above these resistance points.
The inability of LUNC to break above the moving averages confirms that the market is firmly in the hands of the bears. Traders will unlikely see any substantial bullish reversal until the price clears these levels, which would require significant buying volume.
RSI Divergence Signals More Downside Risk
The RSI divergence on the chart stands out as another key indicator of potential further losses. With the RSI reading of -18.46986665, the bearish divergence confirms that selling pressure overwhelms any bullish attempts to recover. While LUNC has experienced minor bounces, the overall momentum suggests the possibility of a deeper correction in the near term.
The RSI typically provides early signals for potential price reversals, but the divergence points to continued selling in this case. LUNC could be headed for further downside in the coming sessions unless the RSI shows more neutral or bullish signs.
Conclusion: More Bearish Action Expected in the Short Term
Given the combination of bearish moving averages and a negative RSI divergence, Terra Classic appears poised for more downside pressure. Traders should keep an eye on key support levels, particularly around $0.0008200, as a break below this level could lead to even steeper declines. On the upside, clearing the 20 and 50 EMAs could provide some relief, but the overall technical setup suggests that the bears remain firmly in control.
In the short term, LUNC is likely to remain under pressure unless broader market conditions improve or buying volume increases significantly. Until then, caution is advised when considering any long positions.
