Terra Classic Price Prediction: LUNC turns to the downside as the cap proves too strong


  • Terra Classic price is set to tank over 10% for the week as bulls break teeth on the price cap.
  • LUNC turns to the downside in search of support.
  • With the market turmoil forecasted for next week, a test and break below the 55-day Simple Moving Average looks granted.

Terra Classic (LUNC) price action has been trading higher before the start of 2023 as an outlier where other cryptocurrencies were still tanking in the crypto winter. LUNC has received firm rejections on the topside, and the fade could result in more losses on the back of very packed data. Expect Wednesday and Thursday to be the most challenging trading days next week as Terra Classic price action will be testing the critical support and could break lower to the downside towards $0.000127363.

Terra Classic price action set to tank back to 2022

Terra Classic price sees traders already gearing up for a very heavy and eventful week. After a winning streak of four weeks, sentiment started to turn slightly last week with nearly a flat close. That same week, bulls received a firm rejection on the top side, which happened again this week, which triggered massive profit-taking as bulls fled the scene to avoid getting caught in the price action for next week.

LUNC is set to face violent swings on Wednesday with the U.S. Federal Reserve and Super Thursday with the BoE and the ECB coming hours away from one another. Should those three central banks still communicate the same message that inflation is still not weakening enough and more needs to be done, LUNC could be seen tanking to the low of December last year, near $0.000127363. Indeed, when that 55-day Simple Moving Average gives way as support, it would be followed by a nosedive move as the bull trend gets broken.

LUNC/USD weekly chart

LUNC/USD weekly chart

U.S. Fed fund futures are pointing to a slowdown from the Federal Reserve and Jerome Powell. Should Powell play along with that forecast as markets price in only 25 basis point hikes, markets would turn in favor of risk assets as clearly the pivotal level for the Fed is near, and risk assets get a free ride to jump higher, with $0.000364496. That means a massive jump higher as the inflation chain would get broken. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Litecoin Price Prediction: LTC tries to retake $100 resistance as miners halt sell-off

Litecoin Price Prediction: LTC tries to retake $100 resistance as miners halt sell-off

Litecoin price grazed 105 mark on Monday, rebounding 22% from the one-month low of $87 recorded during last week’s market crash. On-chain data shows sell pressure among LTC miners has subsided. Is the bottom in?  

More Litecoin News
Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin fails to recover as Metaplanet buys the dip

Bitcoin price struggles around $95,000 after erasing gains from Friday’s relief rally over the weekend. Bitcoin’s weekly price chart posts the first major decline since President-elect Donald Trump’s win in November.

More Bitcoin News
SEC Commissioner Hester Pierce sheds light on Ethereum ETF staking under new administration

SEC Commissioner Hester Pierce sheds light on Ethereum ETF staking under new administration

In a Friday interview with Coinage, SEC Commissioner Hester Peirce discussed her optimism about upcoming regulatory changes as the agency transitions to new leadership under President Trump’s pick for new Chair, Paul Atkins.

More Cryptocurrencies News
Bitcoin dives 3% from its recent all-time high, is this the cycle top?

Bitcoin dives 3% from its recent all-time high, is this the cycle top?

Bitcoin investors panicked after the Fed's hawkish rate cut decision, hitting the market with high selling pressure. Bitcoin's four-year market cycle pattern indicates that the recent correction could be temporary.

More Bitcoin News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP