Terra Classic (LUNC) Faces Key Resistance After Bullish Breakout from Ascending Triangle Pattern

The Terra Classic (LUNC) coin recently saw a bullish breakout from an ascending triangle pattern, raising excitement among community members.

Terra Classic (LUNC) price recently saw a bullish breakout from an ascending triangle pattern. This technical formation is usually characterized by a lower high followed by a higher low, converging towards a common resistance line. As the price attempts to break out of the pattern, it typically encounters increasing bullish momentum.

In the case of LUNC, the coin saw a lower high on March 13 and a higher low on March 17. Both price movements attempted to break out of the ascending triangle pattern, demonstrating bullish interest in driving the price upward.

After rising over 5% in the last 24 hours to reach $0.00009937, LUNC now faces a crucial resistance level at $0.00012519. This level marks the upper boundary of the ascending triangle pattern and will likely determine LUNC's next move.

If LUNC manages to break through this resistance level, it could trigger a bullish breakout from the ascending triangle pattern, potentially leading to large gains. However, failure to maintain this pattern could result in sideways movement or a decline, stifling recent excitement.

Technical indicators provide additional insights into LUNC's price action and future movement. The Bollinger Bands (BB) are getting tighter on the 1-hour chart, indicating less volatility and a possible breakout.

If LUNC breaks above the resistance and continues rising, the widening Bollinger Bands could support a strong move upward. Moreover, the Stochastic RSI for LUNC is indicating an overbought state, with readings as high as 93.61 and 82.58.

This indicates that the price may be ripe for some short-term profit-taking by traders, especially considering the rapid ascent over the past few days. However, if the price manages to stay above crucial support levels, the upward trend may continue.

This scenario gives LUNC a solid foundation for further gains. Interestingly, LUNC's increased trading volume is further reinforcing its optimistic price outlook.

According to CoinGecko, LUNC's daily trading volume jumped by 222.09% to reach $34.02 million. This surge in trading volume is usually an indicator of the strength of breakouts.

As LUNC traders gear up for the upcoming 270 billion token burn event, the rising volume suggests that market participants are anticipating a rally post-burn.

The latest volume rise is also a sign of strong support for the current breakout, which could propel LUNC price higher in the coming days.