Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- LUNC’s extended downside hit a key support level near $0.000060.
- The Futures market was bearish at press time.
After an impressive recovery in late September, the crypto market entered a swift correction as Bitcoin [BTC] dropped below $28k. In particular, Terra Classic [LUNC] shed over 10% of its gains and hit a crucial demand zone.
Is your portfolio green? Check out the LUNC Profit Calculator
At press time, BTC eased at the mid-range near $27.1k and attempted to cross above $27.5k. If the BTC retargets the range-high at $28.3k, LUNC could extend its recovery from this demand zone.
Is a rebound likely?
In late September, the sharp price rejection at the H12 bearish order block (OB) of $0.00006463 – $0.00006805 (red) confirmed that sellers could devalue the asset. The bearish OB has remained steady since late August, making it a key short-term supply area.
The reversal that followed tipped sellers to gain over 10%, dropping LUNC from over $0.0000650 to a key demand zone and weekly bullish OB of $0.00005557 – $0.00006022 (cyan).
But the drop could ease at the demand zone if BTC doesn’t register more losses and crack below $27k. If so, LUNC could rebound and aim at the supply area of $0.0000650 again.
Meanwhile, the RSI retreated to the oversold zone, with no sign of reversal at press time. It demonstrated that selling pressure intensified in the past few days. Besides, the dip in OBV confirmed that Spot market demand declined over the same period.
The Futures market was bearish
Despite a possible reversal at the demand zone, the Futures market was firmly bearish at the time of writing. Notably, the Open Interest rates dropped from >$2.4 million to below $2.0 million between 28 October and press time (4 October Asian afternoon trading session).
How much are 1,10,100 LUNCs worth today?
The drop in Open Interest rates underscores a dip in demand in the Futures market and a bearish bias. Besides, the steady decline in CVD (Cumulative Volume Delta) further reiterates sellers’ market leverage over the past few days.
So, tracking BTC’s price is crucial for better clarity and LUNC’s next direction.