Terra Classic (LUNC): How RSI to Price Divergence Confirms Shorting Opportunity
Terra Classic (LUNC) has presented impressive performance over the previous week following its tax burn confirmation. The asset’s price action subsequently resorted to a massive uptick, delivering a whopping 78% surge within the past two weeks.
Though the outcome, a massive dip could be upcoming and may offer short traders a lucrative opportunity. LUNC’s uptrends noted a slight pause early in September. Nevertheless, the alternative token maintained its bullish strength despite the brief sell-off.
LUNC started this week with a massive bullish action on September 5. Nevertheless, the altcoin endured another selling momentum during this publication. LUNC traded around $0.00035 at this writing, representing a 22% drop from the current weekly peak. That indicated bearish markets, but some other facets could have intensified its downside.
Potential Opportunity with High-Risk Profile
The altcoin has already surged high enough to attract some selling momentum from profit bookers. However, that isn’t the only factor supporting the possible downside. The altcoin’s price diverged with the RSI (Relative Strength Index) – the most common signal of a probable pivot.
The Relative Strength Index printed a lower high, while LUNC’s price formed a higher high. That shows trend weakness, aligning with the higher reversal chance. The altcoin had already surrendered some of the acquired gains during this writing. That saw it resorting to the trip from the overbought territory.
Signals of more downward chances don’t necessarily assure such outcomes. Investors should beware that LUNC has received massive attention and may be in a remarkable price growth phase. The colossal social volume confirmed that narrative.
Also, the asset’s social volume growth noted a positive move in the weighted sentiment. These indexes suggest that LUNC could still see a massive demand around the current value area. Moreover, the investor sentiment remains in an impressive buy region, backing the possibilities of restricted LUNC’s sell-off.
Short investors should consider the risks of investing in LUNC despite the massive signals. Furthermore, the bearish market situation could pressure Terra Classic’s price, but time will reveal the outcome. Indeed, upcoming price tendencies remain attractive to witness.
Stay tuned.
Editorial credit: Maurice NORBERT / shutterstock.com
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