• Terra Classic price is unable to rebound after the 25% decline from last week.
  • LUNC cannot jump back up as an important floor keeps attracting traders.
  • Expect a possible premature completion of the bearish triangle with LUNC set to shed another 70% of the value.

Terra Classic (LUNC) price is pure from a technical point of view, still stuck in a bearish triangle on a weekly chart. The descending side of the triangle has already undergone two secured tests and ran alongside the 55-day Simple Moving Average (SMA) for a while. The triangle baseline at $0.00016501 still holds for the moment, but sees pressure building as a third test is underway this week. Will the level hold or break into Sunday night's close? 

LUNC set to crater as markets are falling back into to overall 2022 pattern

Terra Classic has been seeing that earlier mentioned $0.00016501 as quite a pivotal level in its existence ever since LUNC saw the light of day. It was the peak at its opening week back in May/June, saw a test but failed to break it to the upside in June, and got a clear break in August. Since that rally, price has been falling with consistently lower highs in September, building pressure that led to last week's test and the current test this week at the level. 

LUNC price, next to that, sees downward pressure coming in from the red descending trend line that is orchestrating the bearish squeeze with lower highs each week. Although the bulls came close at the beginning of last week, not even a false break could be triggered. Expect, with the current turn of events in FTX, more downward surprises to pop up in the coming days and weeks, that could first push LUNC towards $0.000014422 before cratering toward $0.000006166 as more US dollar strength is coming back into play.

LUNC/USD weekly chart

LUNC/USD weekly chart

Although that underpinning is there, it could simply not be enough to support price action if a few external elements chose to create some headwinds. A combination of elements like another missile hitting Poland, US dollar strength that kicks back in, and equities that sell off would be a toxic cocktail that would see DOGE price hit $0.0566 or even $0.0409, depending on the severity of the catalyst that triggered the move. That would mean that another 30% to 50% of losses could still unfold after another FTX casualty or geopolitics erupting again.

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.

Cryptos feed Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: Assessing chances of one last bear market rally for 2022

Bitcoin Weekly Forecast: Assessing chances of one last bear market rally for 2022

Bitcoin price is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

More Bitcoin News

Uniswap price could kick-start a 14% rally if it reclaims this level

Uniswap price could kick-start a 14% rally if it reclaims this level

Uniswap price has been following the broader market bullish cues over the last few days sustaining its rise from 48 hours ago. Although the sentiment seems to have shifted slightly, UNI holders can still book profits if the Decentralized Finance (DeFi) token climbs to this level.

More UniSwap news

ATOM price suggests bears are still in control for these reasons

ATOM price suggests bears are still in control for these reasons

Cosmos price is producing a countertrend rally after suffering a steep decline throughout the month. If market conditions persist, ATOM could wipe out newly established bullish positions. Key levels have been defined to gauge ATOM’s next potential move.

More Cosmos news

Cardano Price Prediction: A new yearly low before the bounce

Cardano Price Prediction: A new yearly low before the bounce

Cardano price has suffered a vicious downtrend move throughout November. Ss price consolidates, the technicals suggest a bounce occurs while on-chain metrics hint that investors are considering securing profits sooner than later.

More Cardano news

Bitcoin: Assessing chances of one last bear market rally for 2022

Bitcoin: Assessing chances of one last bear market rally for 2022

BTC is in a good place to trigger another bear market rally from a high-time frame perspective. This development, combined with the optimistic outlook seen in on-chain metrics, further strengthens the possibility of a happy ending to 2022.

Read full analysis

BTC

ETH

XRP