Terra Classic has gained a lot of attention in the past few days as the price has experienced a sudden rise of almost 190%. Although the volume behind the operation was low, it showed an increase in the participation of traders. Currently, the price of LUNC has made a strong recovery after a short pullback, regaining the key level of $0.0001 and reviving the strong bullish momentum.
On the other hand, the current upswing seems to be supported by strong local accumulation, which may also lead to a short-term squeeze. With this, the question arises whether the price of LUNC will rise above the necessary resistance at $0.00014.
LUNC Prepares for High Recovery Cost
As seen on the daily chart, LUNC is trying to break the long-term uptrend near the $0.00012 region. The recent session has been supported by bullish candles followed by rising volume, which indicates a bullish market trend. Meanwhile, the RSI continues to move closer to the high price zone, showing a strong upward trend despite a slight decline.
The price is currently trading above the main support at $ 0.0001, which is now playing an important role in sentiment and creativity. If the price breaks the rising trend, a high of $0.00141 may be near, which may attract more buying volume. On the other hand, failure could push the price down to below $0.00009. However, technology and peripherals show continued growth.
Terra Classic Open Interest Rate Will Fall As Price Rises
Despite the rising prices, Terra Classic’s Open Interest has fallen sharply after recently peaking at $30 million. The drop in OI indicates that negative traders are closing out gradually following the recent rally. In general, a decrease in OI during price increases indicates that the market is reducing excess capacity rather than aggressively opening new positions.
A rise in prices coupled with a drop in Interest Rates often points to short-term or speculative transactions rather than speculation. This means that bears can exit positions when prices rise, creating a difficult buying situation. At the same time, the absence of destructive forces reduces the risk of long-term compression, making the meeting healthy in the short term.
However, if Open Interest continues to fall sharply, the bullish momentum may weaken over time due to the lack of fresh participation from emerging sellers.
Will LUNC Face a Short-Term Squeeze to Higher Targets?
LUNC continues to show strong momentum after recapturing the key level of $0.0001, while the drop in Open Interest shows that the rally is being driven by short-term and positional demand rather than overperformance. This setup creates a short-term squeeze, especially if the price breaks above the resistance near $0.00012.
Such a move could force the remaining bearish to exit, which could accelerate the rally to $0.00014 and higher levels. However, failure to break above $0.0001 could weaken the bullish order and trigger a pullback to the $0.000073 support zone.
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