Terra Classic (LUNC) Displaying Signs of Bullish Divergence Amid Price Rebound

Terra Classic [LUNC], the embattled token of the collapsed Terra ecosystem, is displaying signs of a major bullish divergence amid a price rebound.

Terra Classic (LUNC) has shown signs of a major bullish divergence with a price rally. After a period of consolidation following UST’s de-peg earlier this year, LUNC’s price has been on the up and down.

Now, as Javon Marks points out in his technical analysis, a bullish divergence between LUNC’s price and its On-Balance-Volume [OBV] has surfaced. This OBV is a crucial technical indicator that showcases the net volume flow to gauge future price movements. In the 3-day chart above, this indicator points toward a potential breakout with the price set to rally by a staggering 342% to hit $0.00042986.

This bullish divergence and breakout could be the beginning of a much larger price rally for LUNC. However, it is important to note that this is just one technical indicator and should not be used as the sole basis for making investment decisions.

A bullish divergence occurs when the price of an asset makes a lower low while an indicator, such as the OBV, makes a higher low. This divergence is often seen as a sign of bullish momentum, as it indicates that the selling pressure is decreasing even as the price is falling.

In the case of LUNC, the OBV indicator has been rising steadily over the past few months, even as the price of the token has fluctuated wildly. This divergence could be a sign that the selling pressure on LUNS is decreasing, which may be leading to the recent price rally.

However, it is important to note that this technical analysis is only one piece of the puzzle when it comes to understanding the overall price movements of any asset. A variety of factors can influence the price of cryptocurrencies, including news, rumors, and the broader economic climate. It is always advisable to conduct thorough research and exercise caution before making any investment decisions.

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