LUNC Defies Bitcoin's Downtrend, But Traders Remain Cautious

Terra Classic (LUNC) has seen significant gains despite Bitcoin's recent uptrend, climbing by 34% since last Saturday. This is a stark contrast to the altcoin market, which was up a more modest 6.24%. The Terra Classic trend had been bullish after its rally to new highs in early May and has now retraced to just above the $0.000054 level that was the 78.6% Fibonacci retracement.

The local resistance zone at $0.0000688, which had previously served as a support in mid-May, was breached and retested as support this week, leading to another 10% bounce. While a rally to $0.0001-$0.000123 is expected based on the higher timeframe LUNC trend, traders should remain cautious.

The spot trading volume on Binance has been falling since the 7th of June, raising suspicions about bullish strength. Furthermore, a Bitcoin selloff could hurt LUNC's progress, so it's essential for traders to keep an eye on the leader's trends as well.