Terra Classic’s (LUNC) downward correction – The next big buy-the-dip opportunity?

Bitcoin (BTC) started this week with a low of $42,264 before surging to as high as $43,097 and then stabilizing above the $42,500 mark. Ethereum (ETH) followed a similar volatile path, initially dipping before consolidating at around $2,300. Breaking the negative trend, there was a substantial influx of capital into cryptocurrency funds from January 29th to February 2nd. Last week alone, a total of $708 million flowed into investment on cryptocurrencies. 

Interestingly, the recent arrest of Do Kwon, founder of the now-defunct Terraform Labs, has brought Terra Classic (LUNC) back into the limelight, stirring a significant buzz within the crypto sphere. According to Mike Ermolaev, the market analyst for FXStreet, this event has had a profound impact, not just in terms of legal drama but also on the market's perception and valuation of this cryptocurrency. 

The apprehension surrounding Kwon's legal challenges has paradoxically injected a dose of optimism into LUNC and this twist of fate raises a pivotal question: can Do Kwon's creation ascend from the abyss it once fell into? As the market begins to digest these developments, a noticeable correction to the downside has started to manifest in the price of Terra Classic (LUNC), hinting at the volatile journey ahead.

Hyper jump in Terra Classic (LUNC)

The latest news surrounding the Terra Classic (LUNC) cryptocurrency has brought about some notable developments in its price performance. Last week, LUNC experienced a substantial surge in both its price and trading volume. The price of Terra Classic (LUNC) witnessed a significant jump, accompanied by a remarkable 700% increase in trading volume on February 4th. Despite the recent challenges faced by LUNC, these positive indicators suggest a potential turnaround. Furthermore, there is growing anticipation that Terra Classic's (LUNC) price could reach $1 in 2024. 

The Terra Classic community has taken a significant step by voting to cease minting Terra Classic USD (USTC). Participants from the LUNC community have unanimously supported the complete halt of Terra Classic USD minting. Terra Classic's (LUNC) ultimate goal is to assist the coin in regaining its original USTC-to-US-dollar parity by burning trillions of LUNC tokens that were created during the collapse. 

However, it's worth noting that despite recent positive developments, Terra Classic's (LUNC) price has started showing signs of correction to the downside.

Terra Classic (LUNC) technical analysis

LUNC is currently trading between support at $0.00010104 and resistance at $0.0001154. The Relative Strength Index (RSI) stands at 55.98, indicating a moderate level of bullish momentum. 

The Stochastic Oscillator is at 53.3, reflecting a neutral position in the market. 

The MACD, with a value of 0,00000109 below the signal line, suggests potential bearish pressure.

Terra Classic (LUNC) price prediction

If Terra Classic (LUNC) manages to break above the resistance level at $0.0001154, it may pave the way towards $0.0001164 and $0.000117.

 

On the flip side, the market lacks a clear direction, making it vulnerable to sudden price swings.  In a bearish scenario, if LUNC fails to hold above the support level at $0.00010104, it may open the door to a potential downtrend aside $0.00009564 and $0.00009472.

Is a full Terra Classic (LUNC) ahead of us?

It's too early to talk about a significant entry of Terra Classic (LUNC) into the game, despite its phenomenal performance. Nevertheless, it's worth noting that this coin holds promising prospects for the future, and who knows what will unfold in the next couple of months, especially when the story of the LUNC strike resolution begins to bear fruit. As per Mike Ermolaev, this could lead to great investment opportunities soon, so it's wise for investors to keep an eye on Terra Classic (LUNC). The potential for a buy-the-dip opportunity remains on the horizon, and the upcoming months could offer a clearer picture of its trajectory.

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