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July 24, 2024
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Is Terra Luna Classic’s Crown As The ‘Top Gainer’ Fading? LUNC Price Faces Uncertainty Amid Declining Open Interest

The post Is Terra Luna Classic’s Crown As The ‘Top Gainer’ Fading? LUNC Price Faces Uncertainty Amid Declining Open Interest appeared first on Coinpedia Fintech News

In the past day, Terra Luna Classic experienced a significant uptick, breaking through key resistance barriers, sparking hope for a potential bullish surge. While LUNC claimed the title of ‘top gainer’ today, it’s now struggling with maintaining its upward momentum due to unfavorable on-chain signals. This has led to rising concerns of a sharp drop, given the lack of buyers to sustain the buying interest.

LUNC’s Long/Short Ratio Favors Bears  

After witnessing a trend reversal from $0.000064, LUNC’s price trajectory has raised concerns among traders, many of whom have adopted a bearish path. This shift in sentiment is evident as a significant number of traders have opened short positions, anticipating a potential drop in LUNC’s value. Recent data from Coinglass suggests that LUNC’s long/short ratio has been on a downward trend, recently hitting a low of 0.7292.

While 42.17% of positions remain bullish, a more substantial 57.83% are leaning towards the bearish side. This imbalance in positions indicates a rising bearish sentiment in the market for LUNC. If the majority of traders continue to bet against LUNC’s price rise, it might hamper buying demand.

Moreover, with a significant number of traders liquidating their futures positions to capitalize on or eliminate the risks of price volatility, the open interest (OI) has receded from its peak. Today, the OI reached a notable one-month high at $5.07 million. However, it couldn’t sustain this momentum, with traders cashing in near this peak.

At present, the OI has declined, hitting a low of $4.1 million. This decrease indicates a reduced trading fervor in the LUNC market. Such declined activity could temper the altcoin’s volatility and potentially drive it back to its breakout point, especially in light of the dropping buying interest.

What’s Next For LUNC Price?

LUNC price is currently on a robust buying sentiment; however, bears are attempting to defend a surge above $0.000064. However, buyers might soon retest the breakdown level to validate further surge. As of writing, LUNC price trades at $0.0000612, surging over 6.7% from yesterday’s rate.

On the 4-hour price chart, LUNC price has declined below the EMA200 trend line and bears are now aiming for EMA20. Despite testing the immediate support at $0.00006 multiple times, the bulls remained strong, indicating that traders are holding their positions in anticipation of a further surge. If the price surpasses $0.000065, we could see LUNC price aiming for $0.000073.

The rising moving averages and the RSI below the overbought region suggest a bullish momentum. On the bearish side, LUNC’s initial support is at $0.000058, followed by a critical level at $0.000052.

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