ambcrypto.com
Since Saturday, the 6th of June, Bitcoin has climbed 8.10% from a low of $59,500 to $64,318. The $64k area was a short-term supply zone.
But it is unclear if the bulls can flip it to support and continue their advance.
On the other hand, the altcoin market was up a slightly more modest 6.24% since last Saturday, but both Bitcoin and TOTAL2, which tracks the altcoin market capitalization, were in long-term downtrends.
By comparison, Terra Classic [$LUNC] was up by 34% since last Saturday’s low. With a market cap of only $405.8 million, it can be argued that it requires less capital to move $LUNC prices.
Another factor that helped explain the relatively stronger $LUNC gains was the higher timeframe price structure. AMBCrypto reported that the Terra Classic trend was bullish after its rally to new highs in early May.
It had retraced to $0.000062 by the 6th of June, just above the $0.000054 level that was the 78.6% Fibonacci retracement. The developments since then have reinforced a bullish outlook on the price front.
$LUNC bulls conquer local resistance zone, driving another 10% bounce
The $0.0000688 area (cyan) had been a local resistance zone a week ago but has since been breached and retested as support. The subsequent price bounce has reached $0.000075.
This zone had been a support in mid-May and was likely to serve as resistance now.
Based on the higher timeframe $LUNC trend, a rally to $0.0001-$0.000123 can be expected. Yet, traders should remain wary.
Sustained capital inflows are needed to drive a recovery. However, since the 7th of June, the spot trading volume on Binance has been falling.
A price bounce, even from key levels, on weak trading volume raised suspicion about bullish strength. A Bitcoin selloff can hurt $LUNC’s progress, so traders should keep an eye on the leader’s trends, too.
Final Summary
- The Terra Classic bullish performance over the past week could be just the start of another upward impulse move.
- A stabilizing Bitcoin would aid $LUNC’s bullish chances, but a BTC sell-off could leave a huge dent on the altcoin’s sentiment.