Terra Classic (LUNC) Drops Below Key Moving Averages as Bears Eye Breakdown: Will $0.000052 Hold as the Next Major Support Zone?

In the past 24 hours, Terra Classic (LUNC) has shown signs of mounting downside pressure. After struggling to hold above the critical $0.00005800 zone, the token dropped to $0.00005693, marking a 2.68% intraday decline. While the price movement may appear modest, a closer look at the technical indicators paints a more bearish short-term picture.

LUNC Trades Below Major Moving Averages

One of the most striking features on the current 4-hour chart is that LUNC has fallen below all key Exponential Moving Averages (EMAs), specifically the 20 EMA (0.00005892), 50 EMA (0.00005943), 100 EMA (0.00005982), and 200 EMA (0.00006056). Historically, when price action remains beneath these EMAs, it reflects a loss of bullish momentum and a shift in trader sentiment toward caution.

Additionally, the EMAs are beginning to compress, with shorter-term EMAs curling downward and the 200 EMA remaining elevated. This type of alignment typically confirms trend exhaustion or the early stages of a downtrend continuation.

Key Support Levels to Watch

LUNC appears to be testing horizontal support around $0.00005556, which has acted as a base multiple times in the last month. A sustained breakdown below this level could open the door to deeper losses. The next major support zone lies near $0.00005272, a level not visited since early April.

On the flip side, bulls will need to push the price back above $0.00005892 (20 EMA) to shift momentum back in their favor. Reclaiming that level could signal a minor relief rally; however, the likelihood remains slim without a significant volume surge.

Volume and Momentum Remain Weak

Another red flag is the lack of bullish volume accompanying price action. LUNC’s moves in the past 24 hours have lacked conviction, with no visible spikes in trading activity. This weakness aligns with what the chart already suggests, a bearish continuation setup.

Moreover, if we factor in recent macro sentiment and the altcoin market’s ongoing consolidation, LUNC could find it difficult to mount a recovery in the short term. The absence of momentum above the EMAs adds further weight to this argument.

Final Thoughts

While LUNC’s decline in the last 24 hours may not seem dramatic at first glance, the broader technical setup suggests growing vulnerability. Trading below all major EMAs, declining volume, and weakening price structure indicate that bears currently hold the advantage.

If LUNC breaks below the $0.00005556 support zone, traders should keep a close eye on $0.00005272 as the next major test. Until then, any short-term rallies are likely to be capped at the $0.000058–$0.000060 resistance cluster.

As always, investors should stay cautious and monitor both price action and volume closely before making any trading decisions.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.