Terra Classic (LUNC) has encountered a downward trend in the past weeks, defying expectations even in the face of promising advancements. Despite garnering support from industry giant Binance for its latest network upgrade, the token’s value has been on a steady decline, losing nearly 10% of its value in a month.
However, the much-awaited change of fortunes may be on the horizon for the troubled crypto token.
Notably, crypto market analyst Javon Marks said on July 31 that a regular bullish divergence has been confirmed at LUNC’s support. Essentially, bullish divergence serves as a sign of a possible trend reversal, indicating that the downward momentum is losing steam as market bulls gain more strength.
“A Regular Bullish Divergence has recently been confirmed right in a support level. This type of divergence can signal the downward momentum to be “slowing down” and an upward trend to be coming.”
– the analyst noted.
As a result, this pattern can be considered a “buying opportunity” for LUNC investors, he added.
LUNC eyeing a potential 387% rally, analyst says
Javon Marks’ confirmation of a regular bullish divergence comes several days after the crypto expert noted that LUNC’s “price breakout is holding,” adding that a rally of more than 387% is still in the cards.
The analyst said Terra Classic was displaying “massive increases in momentum,” which could ultimately lead to rapid price increases, “perhaps faster than many may be able to comprehend.”
LUNC’s strength seems to be coming from its current support level, Javon noted, which is located in an area around the $0.000079 price.
LUNC price analysis
At the time of publication, LUNC was changing hands at $0.00007964, down 1.8% in the past 24 hours.
The crypto token plunged over 4% on the weekly chart, and nearly 10% on the month, losing around $45 million in market cap over that period.
Year-to-date, the embattled cryptocurrency lost more than 45% of its value.
Meanwhile, the TerraClassic community remains divided on how to handle 800 million USTC tokens connected to the Ozone Protocol.
Some members, including prominent figure Vegas, propose burning these tokens, while others, including validators, suggest returning them to the community pool.
A potential burn could provide a further boost to LUNC and USTC prices, which have been so far struggling to see significant upside.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
