Terra Classic (LUNC) has experienced a notable rise in the recent months. From a low point on October 19 at $0.0000554, LUNC saw an impressive surge, climbing over 400% to a peak of $0.00028 on December 5. However, this rise was not sustained.
Following the spike, LUNC witnessed a significant correction, dropping its value by 42% to $0.00016 as of December 13. This recent fluctuation raises critical questions: Is this a precursor to a more extensive downtrend or a temporary setback before reaching new highs?
The price of LUNC made its first significant rise to $0.0006 on September 8, 2022, after it collapsed. But upon reaching this high, it was sent back, from which it came up, and on August 17, 2023, made it back to $0.00005.
The area around $0.00005 was retested for support and, on October 19, was revisited. A bounce led to a breakout above the descending triangle and eventually past its next horizontal resistance at $0.00012.
Considering that we saw a new uptrend from October, it should be subdivided into a five-wave pattern. Since the recent spike was its wave 3, the following downturn was its corrective wave and will result in one more high to $0.00033.
However, as the price is in a sharp decline, which isn’t a typical occurrence for wave 4, this needs to be validated. If it manages to stay above the 0.5 Fibonacci level and starts consolidating, the likelihood of a higher high would be bigger.
But if it continues moving down similarly, the overall uptrend from October ended on the recent spike. In that case, we expect a deeper retracement, potentially down to the $0.000087 area.
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