- Despite the significant decline, market structure remained strong.
- A return to the key demand areas highlighted appears likely.
Terra Classic (LUNC) has recorded high trading volume over the past four days. A month ago, the market structure on the higher period charts swung in favor of buyers. The bulls continued their upward trend.
Bitcoin (BTC) continued to trade within the $61k-$63k region. It appears to be going strong after the recent rally and is likely to continue. This may also cause LUNC price to recover.
The upward trend suffered a setback
Source: LUNC/USDT on TradingView
Fibonacci retracement levels are marked based on the November rally. The 12-hour chart captured the retracement to the 78.6% level before breaking the market structure in early February, falling just below.
Since then, the price has surged past the $0.00014 resistance zone. Selling pressure over the past 24 hours pushed LUNC down to $0.000167.
The decline may continue to retest the $0.00014 demand zone.
OBV continued its upward trend, but there were not enough sales yet to push LUNC downward.
RSI also hit 69, which was solid bullish momentum despite some declines in recent hours.
Sentiments are mainly optimistic
Source: Coin Analysis
AMBCrypto’s analysis of futures market data from the Binance exchange shows that the crowd still maintains a bullish bias.
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The open interest chart shows a downward trend along with the price, showing that long positions have been closed. Short sellers have not yet flocked in at once.
OI showed that sentiment was starting to turn bearish, but funding rates remained solidly positive. Therefore, speculators were still long and strong.
Disclaimer: The information presented does not constitute financial, investment, trading or any other type of advice and is solely the opinion of the author.