Is Terra Classic [LUNC] on the verge of a 567% breakout?

• A strong breakout pattern has emerged for $LUNC, targeting a potential surge of over 567%.
• On-chain metrics revealed rising transaction volume and a positive Funding Rate, signaling optimism.

Terra Classic [LUNC] is showing signs of a massive breakout, attracting the attention of investors.

Technical indicators and strong on-chain activity suggested that LUNC may be gearing up for a significant price movement, with a potential for a 567% surge.

The broader cryptocurrency market is still dealing with volatility and uncertainty. However, amidst these conditions, LUNC stood out due to its promising technical patterns.

As of press time, LUNC was trading at $0.00008326, reflecting a modest 0.85% increase in the last 24 hours. 

A technical analysis shared by analyst Javon Marks on X (formerly Twitter) highlighted a strong breakout from a long-term descending triangle pattern, a classic indicator of an impending upward trend. 

The RSI has retested, signaling strengthening momentum. Analysts are now targeting $0.000593, a potential gain of over 567% from current prices.

Source: X

Is LUNC’s triangle breakout confirmed?

Recent technical charts indicated that LUNC broke out of a descending triangle pattern, which persisted for over 150 days.

The press time key support level was around $0.00008, while the resistance level was expected to be near $0.00012. The RSI held steady above 45, supporting the momentum for a possible price rise.

Source: TradingView

Rising transaction volume and TVL insights

On-chain data further supported the bullish sentiment. Daily transaction volume has risen significantly, with a 32.46% increase in the past 24 hours. This surge reflected growing trader interest in LUNC. 

However, the Total Value Locked (TVL) remained low at $2.2 million, a sharp drop from its historic highs. While this low TVL could signal caution, the increasing transaction volume demonstrates short-term optimism.

Source: DefiLlama

The OI-Weighted Funding Rate for LUNC has remained positive, with the press time rate at 0.0010% as of the 11th of September.

This consistent positive rate indicated that long positions were willing to pay funding fees to maintain their positions, signaling confidence in the market’s upward direction.  

Source: Coinglass

Read Terra Classic’s [LUNC] Price Prediction 2024–2025

The positive Funding Rate aligned with the bullish sentiment and reinforced the technical analysis, suggesting further gains. 

Both technical and on-chain indicators were pointing toward the possibility of a major breakout for LUNC. The upcoming days will be crucial in confirming whether this bullish momentum can be sustained.