Analyst sees LUNC forming an ascending triangle pattern, hinting at potential bullish momentum with strong support near $0.00007500.
LUNC's bullish signals are supported by an EMA crossover, with the 50-day EMA positioned above the 200-day, highlighting buyer strength.
RSI in overbought zone at 72.06 suggests sustained buying pressure; a breach of $0.0001 may confirm LUNC's bullish breakout.
Analyst JavonTM1 has suggested a potentially bullish breakout for Terra Classic (LUNC) based on a technical formation in its price pattern. He highlights an ascending triangle, a formation often signaling a potential upward trend. JavonTM1 points out that this formation, combined with key indicators, suggests LUNC may be poised for a shift toward bullish momentum.
https://twitter.com/JavonTM1/status/1851818965988774225
Ascending Triangle Pattern: Building Bullish Momentum
The price pattern observed in LUNC reveals an ascending triangle, formed by higher lows converging toward a consistent resistance level just below $0.00007500. This horizontal resistance level, tested multiple times without breaching, represents a critical point where the pattern gains strength.
Each higher low reflects buyers entering the market at increasingly higher prices, displaying an upward pressure against the resistance. If LUNC breaks through this resistance, the formation implies the potential for a continued upward trend, likely drawing more buyers and raising market optimism.
Below the resistance line, the "final bottom" level is identified, indicating a low in LUNC's recent trend. This level acts as a support base for the pattern, suggesting that selling pressure may be diminishing as buying activity increases, adding to the bullish signal.
Technical Levels and Indicators Supporting the Uptrend
Further supporting the bullish outlook are technical indicators, specifically the exponential moving averages (EMAs) on the LUNC/USDT chart. The 50-day EMA, resting above the 200-day EMA, indicates short-term bullish strength.
Source: BingX
This crossover, where the shorter EMA stays above the longer, generally reflects a strong upward trend, signifying that buyers have gained momentum over sellers. Recent candles on the chart show prices rising notably above these EMAs, strengthening this positive outlook.
The relative strength index (RSI) at 72.06 marks the asset in the overbought zone, suggesting heightened buying activity. While the overbought condition often hints at potential consolidation, the current uptrend means RSI levels could remain elevated as buying persists.
Testing Resistance at $0.0001: Potential Outcomes
Currently, LUNC is nearing a critical resistance level around $0.0001, which, if breached, could trigger additional gains. The 50-day and 200-day EMAs, now positioned near $0.00009184 and $0.00008951 respectively, may act as support if a pullback occurs, providing potential re-entry points for buyers.
In scenarios where the price holds above the $0.0001 mark, LUNC might maintain its upward trend, creating the potential to revisit previous high levels. However, if the price dips below both EMAs, it could indicate a reversal, signaling caution for traders.
