The crypto market is giving back the gains with some altcoins falling in double-digits. Terra Classic price has from the time it hit highs of $o.000278, retraced by 36% to trade at $0.00018 on Monday.
Bitcoin and Ethereum are also caught up in the headwinds, losing 3.2% and 3.8% to $42,356 and 2,246, respectively. Solana (SOL) lost support at $70 while Cardano (ADA) exchanged hands at $0.55, down 6.5% in 24 hours. Cumulatively, the market cap has fallen by 3% to $1.65 trillion.
Terra Classic Price Prediction: How To Navigate LUNC In December
The Terra Classic community backed the breakout toward the end of November as they celebrated the passing of a proposal aimed at helping the ecosystem tokens — LUNC and TerraClassicUSD (USTC) to reclaim their former glory before the LUNA crash in May 2022.
This bullish outlook propelled LUNC from lows around $0.00007 to highs marginally above $0.00007, making the 63rd largest crypto attractive to traders (scalping) and investors who envisioned a larger breakout to $1.
However, as is common with markets, especially during bull runs, corrections occur due to profit-taking. The same pullbacks are necessary for the uptrend’s continuation. They present opportunities for sidelined investors to enter the market, thus helping to build the momentum for the next move.
For now, Terra Classic is buoyant above support at $0.00018 but facing resistance from the 50 Exponential Moving Average (red) at $0.0001818 and the 21 EMA (blue) at $0.0001933.
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A bull flag pattern on the four-hour chart reveals that a breakout may follow the ongoing consolidation and blast LUNC 38% to highs around $0.00025. This pattern often occurs after a major uptrend and allows bulls to take a breather before pushing for another breakout.
A breakout is anticipated after Terra Classic has defeated resistance at the flag’s upper trendline. The trading volume must rise in tandem to provide the liquidity and momentum to back the breakout.
Therefore, if LUNC follows through with the bull flag, investors could get an early Christmas gift which may continue in the new year and support gains above $0.0003.
Bears are still in control based on the outlook from the Relative Strength Index (RSI) which holds at 40 after rising to 94 in early December. Since LUNC is not oversold yet, declines may continue and possibly bounce back at $0.00015 ahead of the next breakout.
