LUNC’s explosive rise meets caution as open interest evaporates | Credit: Hameem Sarwar
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Key Takeaways
LUNC extends weekly rally to 124%, but nears key resistance.
Indicators show strong momentum yet warn of potential exhaustion.
Falling open interest signals dump-risk as altcoin eyes $0.000067.
Following Ian Alison’s appearance in a LUNC-branded shirt at the Binance conference, the Terra Classic price experienced a significant rally, surging 250% over the course of one week.
Later on, the altcoin erased most of those gains. But today, it has jumped again, extending the seven-day rally to 124%.
CCN previously projected a move above $0.000051. At press time, the LUNC crypto price trades at $0.000061, extending its bullish breakout with room for further gains.
The key question now is whether the LUNC crypto price can sustain this momentum.
LUNC Pushes for More Upsides
The 4-hour chart shows a clear continuation of bullish strength. The Relative Strength Index (RSI) sits at 61.02 and continues to climb.
However, the indicator’s steady rise toward the overbought zone also signals potential exhaustion if the price fails to cool off.
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The Money Flow Index (MFI) mirrors this momentum shift. Now hovering near 49.80, the indicator is attempting to break above the neutral 50 line.
A move above this level would validate renewed accumulation. Still, recent fluctuations reveal pockets of caution among traders navigating heightened volatility.
The combination of a rising RSI and recovering MFI highlights solid short-term enthusiasm.
But it also warns that bullish momentum may fade if divergences appear or if LUNC’s price accelerates too quickly without consolidation.
From a price-action standpoint, the LUNC crypto remains bound between a newly formed resistance ceiling and an untested support zone.
A decisive breakout above $0.000068 could unlock the next wave of upside.
LUNC Price Forecast: Higher
On the daily chart, Terra Classic trades within a falling wedge.
The Awesome Oscillator (AO) supports this structure, trending in positive territory with a sequence of green histogram bars. This confirms increasing bullish pressure while sellers continue to lose influence.
The Bull Bear Power (BBP) aligns with this view. Persistent green bars above the neutral line show that bulls are steadily extending control.
Recent pullbacks have remained shallow, reinforcing the strength of the current uptrend and the potential for LUNC’s price to continue pushing even higher.
Furthermore, LUNC currently sits at the 0.618 Fibonacci retracement level at $0.000056, a critical zone that often determines whether rallies sustain or fade.
The price continues to trend toward the 0.786 level at $0.000067. A breakout above this Fib level would strengthen bullish momentum and pave the way for $0.000081, the next significant resistance.
However, failure to hold above the 0.618 Fib could lead to a retracement toward the 0.50 Fib at $0.000041.
Such a move would indicate a temporary loss of bullish pressure and give LUNC’s price a chance to test lower levels.
Warning Disclosed
It is also important to acknowledge that LUNC’s explosive rally may carry the characteristics of a pump-and-dump event.
One major red flag is the dramatic drop in Open Interest (OI). As of this writing, OI has collapsed from $30 million just two days ago to $5.46 million.
Such a decline indicates that traders are increasingly closing positions rather than building new ones.
When Open Interest dries up during a sharp price surge, it suggests the move is being driven by spot market hype rather than sustained leveraged demand.
In scenarios like this, liquidity becomes scarce, volatility increases, and prices become vulnerable to swift reversals.
Therefore, if OI continues to fall, the LUNC crypto price rally could lose momentum quickly, potentially leading to a correction.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
