Terra Classic Plummets: Bearish Signals Dominate Amidst Market Instability

Terra Classic (LUNC), the original token of the Terra blockchain, has a stablecoin market cap of $138.46M. Despite a significant decline in value since the UST incident, its utility remains as the native staking and governance token. The crypto's market cap has seen a recent increase of 2.2%, with a total value locked of $2.28M and a market cap ranking of #119.

Terra Classic: A Comprehensive Analysis of a Declining Crypto

Terra Classic, formerly known as LUNA, has been making headlines due to its significant market fluctuations and the underlying concerns surrounding its stability. This in-depth analysis provides a comprehensive overview of Terra Classic, examining its market dynamics, technical indicators, and future prospects.

Market Overview: Bearish Signals Prevail

Terra Classic, currently ranked #119 by market capitalization, has witnessed a 2.2% increase in its market capitalization over the past 24 hours. However, the overall market sentiment remains bearish, with the crypto facing strong selling pressure. The crypto's volatility remains elevated at 9.51%, indicating significant price fluctuations.

The total value locked (TVL) for Terra Classic stands at $2.28 million, while the total raised value amounts to $57 million. The trading volume has also surged by 76%, resulting in a traded value of $124.731 million.

Market Dominance and Liquidity Assessment

Terra Classic's market dominance remains low at 0.03%, reflecting its relatively small market share. However, the crypto exhibits excellent liquidity, with a volume/market cap ratio of 22.01%. This suggests that Terra Classic can be easily bought and sold in the market without significant price slippage.

Technical Analysis: Descending Triangle and Bearish Patterns

A technical analysis of Terra Classic reveals a bearish outlook. The crypto is trading within a descending triangle pattern, indicating a potential downward trend. Bearish patterns have formed on the chart, suggesting a decline in the crypto's price.

The 20-day and 50-day exponential moving averages (EMAs) are trading below the 200-day EMA, indicating a bearish trend. The 20-day and 50-day EMAs have also formed a fresh bearish cross.

The moving average convergence divergence (MACD) and the signal line are trading in a bearish crossover and have declined below the zero level. The histograms on the daily crypto chart are also bearish, pointing to further price declines.

The relative strength index (RSI) is trading at 36, indicating oversold conditions. It has also declined below the 14-day SMA, suggesting weak momentum in the crypto's price.

Derivatives Analysis: Sellers Dominate

The derivatives market for Terra Classic has seen a 69% increase in volume over the past 24 hours, resulting in a traded value of $82.87 million. The open interest in the crypto has also advanced by 18%.

The long/short ratio stands at 1.0362, indicating a slightly more bullish sentiment among traders. However, the data shows that sellers are taking over the crypto price, with $383.30K in long liquidations and $60.89K in short liquidations.

Conclusion: Bearish Outlook Persists

In summary, Terra Classic is facing a bearish outlook, supported by technical indicators and market dynamics. The crypto's price is expected to continue declining, with support levels at $0.000050 and $0.0000540, and resistance levels at $0.0001730 and $0.0002540.

While Terra Classic has a stablecoin market cap of $138.46 million, the overall market sentiment remains bearish. Traders and investors should exercise caution and conduct thorough research before making any trading decisions.