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Cryptocurrency News Articles
Volume Analysis of Terra Classic (LUNC) Token: Identifying Resistance Zones and Potential Price Movements
Oct 24, 2024 at 01:24 pm
In a recent analysis, Derek (@kimmyboy2) shared insights on the Terra Classic (LUNC) token, focusing on the critical role of trading volume in the price discovery process.
A recent analysis by Derek (@kimmyboy2) delves into the Terra Classic (LUNC) token, examining its price movements and highlighting critical resistance zones.
Emphasizing the role of trading volume in the price discovery process, Derek's analysis aligns with the broader understanding of technical analysis. Volume, as an indicator of trading activity, provides valuable insights into the strength and sustainability of price trends.
By comparing current trading volumes to historical averages, traders can assess the significance of volume spikes or drops. These unusual trading volumes often signal impending price movements, making the volume a reliable indicator for predicting price turning points.
Derek's analysis also incorporates the concept of oscillator peaks, which are often followed by large dumping occurrences. This perspective aligns with the technical analysis principle that identifies areas of significant inventory buildup as prices fall, ultimately marking strong resistance and support levels.
In the context of LUNC's price movements, Derek identifies three primary resistance zones.
The first zone, between 0.00026 and 0.00029, shows concentrated trading volume. If this section is recaptured, it could lead to an acceleration phase driven by strong momentum, and these targets are now more feasible following the recent massive LUNC blockchain upgrade.
The second zone between 0.0026 and 0.0027 is where the volume oscillator peaks. Derek describes this as a “waiting section for a very large dumping occurrence,” indicating a likely deep correction.
The third zone, between 0.032 and 0.036, aligns with the final phase of a corrective wave pattern (A, B, C). Derek believes this range represents the cycle's end, followed by a long period of price convergence and significant adjustments.
To further substantiate his analysis, Derek also references the Vortex indicator, a technical tool that measures trend strength over 14 periods, using the True Range to calculate directional movement. This indicator provides additional confirmation for the identified resistance zones and anticipated price behavior.
Overall, Derek's analysis offers a comprehensive perspective on the technical factors influencing LUNC's price movements. His forecast for LUNC to reach the $0.03 zone in the current cycle aligns with the broader market sentiment and the token's recent price trajectory. However, as always, it's crucial to approach any investment decision with caution and conduct thorough research.
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