According to reports from AMBCrypto, LUNC is currently testing the $0.000072 resistance level as support after a significant rally. The altcoin had previously approached this level at the end of April as resistance before rallying 69.7% to reach a swing high of $0.000123. The technical indicators show mixed signals, with the Awesome Oscillator and A/D volume indicator making bearish divergence with upward price trends on the 4-hour chart, while the CMF shows buyer dominance with a reading of +0.11.
As reported by AMBCrypto, the MFI has receded in recent days but continues to show capital inflows, while bullish momentum appears to have the upper hand. The rally two weeks ago saw above-average trading volume for a sustained period. The $0.000066 level has emerged as an important local support zone on the 4-hour chart, with a drop below this swing point potentially seeing prices revisit the $0.00004-$0.00005 demand zone. The 1-month liquidation heatmap confirms the $0.000066 level as a key liquidity pocket, with the $0.000057-$0.000060 zone identified as another magnetic zone to monitor.
According to AMBCrypto, a strong reaction from the $0.000072 level would cement bullish dominance in the market. The analysis suggests that while price could fall by another 13% to 25% while keeping long-term bullish hopes intact, the current correction remains within a valid bullish structure. The technical indicators support this view, with the CMF showing unambiguous buyer dominance and continued capital inflows despite recent weakness in the MFI indicator.
As reported by AMBCrypto, traders should avoid being in a hurry to buy despite recent gains, instead focusing on gauging the altcoin's reaction from support levels to understand if a bullish continuation has begun. The analysis emphasizes that while a price drop below the former resistance would not be catastrophic, the bulls can likely drive a move higher from the current support levels. The 25% correction buffer provides a framework for evaluating whether the current pullback maintains the overall bullish structure of the Terra Classic rally.
