- Terra Luna Classic posted strong gains on Saturday, managing to flip the structure bullishly.
- A price dip appeared imminent due to rising bearish sentiment and long liquidations building up.
As a seasoned crypto investor with a few battle scars from market volatility and more than a handful of lessons learned, I find myself intrigued by Terra Luna Classic’s [LUNC] performance on Saturday, August 10th. The 23.3% surge in price was indeed impressive, but as we all know, what goes up must come down – or so it seems.
On August 10th (Saturday), Terra Luna Classic [LUNC] prices experienced a significant jump, increasing by approximately 23.3% from the day’s opening price to the closing one. This growth was accompanied by an increase in trading activity, and it seemed that the upper price range was the next potential goal.
In simpler terms, it appears that the current pattern in Bitcoin‘s price movement, along with an accumulation of positions for long-term holders to sell, indicates potential short-term losses and increased volatility for LUNC.
Open Interest soars as prices break the mid-range level
Over the span of one day, LUNC experienced a change in its bullish pattern by surpassing $0.000087 the day prior. This upward movement allowed it to bounce back from its lower price range, and as a result, the Relative Strength Index (RSI) climbed above the 50-neutral mark.
Despite attempts, the On-Balance Volume (OBV) hasn’t shown notable growth yet. For an increase, it requires steady buying momentum, which appears to be lacking. Additionally, the Demand Index (DMI) indicated the uncertain trend of Terra Luna Classic, a common characteristic of range formations.
In simple terms, the demand for taking positions in LUNC significantly increased from $8 million to $21.1 million, demonstrating that speculators were keen on earning profits as LUNC prices rose. However, over the last few hours, the demand seems to have leveled off, and the funding rate has become increasingly negative.
This indicated a growing bearish sentiment.
Will Terra Luna Classic manage to test the range highs?
Based on the liquidation heatmap, it appears there was indeed a substantial pool of liquidity at approximately 0.0001 USD. This pool could potentially be taken advantage of before a potential bearish turnaround coincided with the highest ranges as indicated on the technical chart.
Online sentiment became more positive once more, suggesting a bullish attitude among users. However, there wasn’t a significant increase in social activity, even though prices were rising.
This was a hint that LUNC lacked hype, which could hamper its bullish ambitions.
In simple terms, we found another challenge approaching in the short term when examining the liquidation levels graph. This is because the sudden increase in price significantly boosted the difference between the current and required liquidation prices (liq levels delta).
Realistic or not, here’s LUNC’s market cap in BTC’s terms
In turn, this could see long positions squeezed to force liquidations.
In simpler terms, reaching the $0.0008 mark could be a short-term goal, as it aligns with a mid-range support level. If Bitcoin (BTC) manages to maintain its current upward trend after testing this support level, it will hinge on whether BTC can hold above the $60,000 threshold.
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2024-08-12 07:03