Those who are optimistic about cryptocurrencies are taking action after a tumultuous event that involved the revelation of investments in struggling US banks. Over the weekend, the price of Terra Luna Classic saw a significant increase as investors responded to the chaotic situation involving Silicon Valley Bank (SVB) and Signature Bank New York.
Fortunately, the support level at $0.00012 held firm and prevented LUNC from reaching $0.00012. Analysts had previously suggested that if the token fell below the previous support at $0.00014, it might surpass the liquidity at the $0.00012 price level.
Analysts predicted a rapid and significant rebound from the support mentioned above level. As expected, Terra Luna Classic made a robust upward surge on Monday and was trading at $0.0001336 at the time of writing.
Thanks to a surge of more than 167% in the trading volume over a 24-hour period, which reached around $123 million, LUNC may be well-positioned to regain its previous standing and earn a new high for 2023 at $0.00021.
Assessing Terra Luna Classic Price Technical Outlook
The price of Terra Luna Classic is slowly recovering in a V-shaped pattern that could potentially bring it up to $0.0021 in the coming weeks or months. However, investors are still determining whether the price of LUNC can maintain this sudden upward movement.
By examining the daily timeframe chart shown below, it is evident that the support level at $0.00012 provided significant liquidity for the price of Terra Luna Classic, which is the primary reason behind the 10% increase in price.
Despite the recent increase in price, it seems that LUNC is preparing to take a break and establish a new, higher support level above $0.0001325 before attempting another push toward the $0.00014 mark.
LUNC/USD daily chart
The daily chart reveals a notable trendline resistance that has been declining since early February when the price of Terra Luna Classic was $0.00021. An attempt to recover the cost in early March was unsuccessful, as it reached the same resistance line and could not surpass it.
Investors should be prepared for delays as LUNC approaches the descending trendline, considering the difficulty it has faced in breaking through it in the past. However, suppose the price of Terra Luna Classic surpasses the next hurdle at $0.00014 and subsequently the trendline. In that case, there is potential for even more significant gains as the bullish investors capitalize on the momentum, targeting $0.00018 and $0.00021.
Alternatively, the trendline and the high level of selling pressure at $0.00014 could become the new point of control, leading to Terra Luna Classic price consolidating between $0.00012 and $0.00014 for several weeks before a new direction is determined.
Levels to Watch In Terra Luna Classic Price – 4-Hour Chart
The two basic levels analyzed in the daily timeframe remain significant on the four-hour chart as well. The support level at $0.00012 was critical in providing liquidity for the bullish move that occurred on Monday. However, buyers should prepare themselves for a more formidable challenge when the price of the Terra Luna Classic reaches $0.00014.
The 50-day Exponential Moving Average (EMA) marked by the red line at $0.0001336 has already impeded the upward momentum of LUNC. It is crucial to continue the uptrend that the price of Terra Luna Classic closes above this level daily.
Investors uncertain about Terra Luna Classic's ability to sustain its recovery would likely wait for the bulls to confirm that $0.0001336 is a reliable support level before investing. Such confirmation is also necessary to maintain confidence in the uptrend and pave the way for an even greater bullish outlook.
LUNC/USD daily chart
In light of this, Terra Luna Classic's price is securely within the realm of bullishness, as evidenced by the buy signal generated by the Moving Average Convergence Divergence (MACD) indicator.
As the MACD line in blue has surpassed the red signal line, investors are probably inclined to purchase Terra Luna Classic. If the indicator continues to climb into the positive region above the mean line at 0.00, it will further solidify the bullish stance of the market.
There are some critical targets to aim for in the upward direction, beginning with the 50-day EMA. Despite already being reached, it is essential for Terra Luna Classic's price to confirm this level as support if it wishes to maintain its upward trend.
Investors may target two critical levels for LUNC's upward movement. The first one is the 50-day EMA, which has already been reached but needs to be confirmed as a support level for the uptrend to continue. The second level is $0.00014, which could also include the 100-day EMA on the four-hour chart. Traders with strong bullish sentiment may wait for another spike before selling their positions at this level.
To make the most profitable move, traders should sell their holdings at the 50-day EMA and then wait for Terra Luna Classic price to confirm its position above $0.0001336 before placing new buy orders. This strategy will help ensure that the 100-day EMA becomes the second target, which could lead to gains targeting the 61.8% Fibonacci retracement level at $0.0001532.
As long as the upward trend of Terra Luna Classic price remains above the 200-day EMA (line in purple), investors can prepare for a potentially significant price surge towards $0.00018 and $0.00021. If Terra Luna Classic's price fails to break above the 50-day EMA, it could negatively affect the recovery observed on Monday.
Read More: