Since the confirmation of its tax burn last week, Terra Classic (LUNC” has shown remarkable success. The asset’s price motion has since reversed to a tremendous rise, producing a staggering 78% increase over the past two weeks.
Regardless of the outcome, short-term traders may find a favorable opportunity in the possibility of a significant forthcoming decline. As September began, the uptrends in LUNC slowed slightly. Although the alternative token saw a brief sell-off, it has now recovered.
The week for LUNC began on September 5 with a big bullish action. Despite this, the alternative currency saw a fresh wave of sales activity during the time this article was being written. As of this writing, a single LUNC token could be purchased for about $0.00035, a 22% decrease from its recent weekly high. Markets were negative as a result, but its decline could have been exaggerated by other factors.
High-Risk Potential Opportunity.
The altcoin’s price increase is significant enough to encourage profit bookers to start selling. But that’s not the only thing that makes us wary about the potential drawbacks. A divergence between the RSI (Relative Strength Index) and the price of the altcoin is the most reliable indicator of an impending reversal.
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Despite the RSI making a lower high, the LUNC price made a new all-time high. The trend is weakening, which is consistent with the increased likelihood of a trend reversal. While this was being written, the altcoin had already given up some of its recent gains. Due to this, it was forced to make the long journey away from the already heavily populated area.
There is no guarantee that outcomes will go down even if warning signs point in that direction. Investors should be wary because LUNC has generated a lot of hype and could be in a rapid price increase phase. The massive amount of people in the world lent credence to the theory.
In addition, there was a change in the aggregate sentiment that was reflected in the rising social volume of the asset. According to these indices, there is still a chance that LUNC will have strong demand in its present price range. As a result, the possibility of a sell-off in restricted LUNC is supported by the fact that investor mood is still in a strong purchase zone.
Even if LUNC has been sending out a lot of signals, short sellers need to think about the potential downsides before committing any money. Additionally, the adverse market condition may put downward pressure on Terra Classic’s price, but only time will tell. Price movements in the future are still interesting to anticipate.
