- LUNC dropped 21%, losing support and triggering a strong bearish market structure shift.
- Heavy long liquidations dominated, showing bulls were wiped out across exchanges.
- Traders watch a key support zone for recovery or deeper decline toward 0.00007000.
Terra Classic recently took a serious hit. LUNC plunged over 21% in 24 hours. Trading volume dropped 28% to $186 million. Market participation weakened fast during the sell-off. The decline erased a large chunk of LUNC’s value. Market cap fell toward $488 million. Bullish enthusiasm faded quickly. Traders cut exposure as sentiment turned sour. What next for Terra Classic?
Bulls Take the Brunt While Support Breaks
Long traders felt real pain this week. Liquidation imbalances widened sharply across exchanges. CoinGlass data showed long liquidations hit $45.39K. Short liquidations totaled only $5.2K. That gap reveals aggressive bullish bets before the drop. http://Gate.io alone recorded $32.12K in long liquidations. Bitget followed with $12.44K. Shorts barely felt pressure. Bitget saw $4.69K in short liquidations. http://Gate.io recorded just $391.38. Leveraged bulls absorbed most of the stress.
The market punished optimism hard. LUNC price action also weakened after losing channel support. The 4-hour chart shows a clear breakdown. A sharp rejection near $0.00011534 handed control to sellers. Price then slid toward the $0.00008000 demand zone. Buyers tried to defend that area. Candles still showed instability around support. The market structure no longer signals continuation. The ascending channel break shifts focus lower.
Traders now eye the $0.00007000 level. That region marks the next major support on the chart. Unless buyers reclaim the channel fast, bears keep control. Momentum indicators back the bearish case. Directional Movement Index data confirmed seller strength. ADX climbed to 49.9905. That reading shows a strong trend. The negative directional index rose to 23.6506. The positive index weakened toward 22.2214. Sellers clearly overtook buyers after resistance held.
Dip Buyers Emerge Yet Risk Remains High
Funding data revealed a surprising twist. OI-Weighted Funding Rate flipped positive to 0.0268%. Some leveraged traders still entered longs during the decline. That behavior suggests dip-buying activity. The market did not see full capitulation. Earlier sessions showed mostly negative funding. Shorts dominated derivatives then. The recent positive spike hints at rebound bets.
Some traders expect a bounce near support. Even so, the broader picture shows elevated risk. Price still trades below the broken channel. Spot demand needs to strengthen considerably. Optimistic derivatives positioning alone cannot reverse the trend. Liquidations, channel failure, and bearish indicators all reinforce downside pressure.
LUNC now tests a fragile support zone. Buyers must defend $0.00008606 to $0.00009000. A successful hold could trigger short term stability. Failure risks another drop toward $0.00007000. Volatility remains high. Traders should watch volume closely. Recovery depends on real buying, not just leverage. The next few sessions look critical for LUNC.
