Terra Classic [LUNC] plunged over 21% in 24 hours as trading volume dropped 28% to $186 million. In fact, daily trading volume fell by more than 28% to $186 million.
Naturally, it showed that market participation weakened significantly during the sell-off.
The decline also erased a substantial portion of LUNC’s valuation and that ultimately pushed its market capitalization down toward $488 million.
Recent bullish enthusiasm faded rapidly as traders reduced exposure and sentiment weakened across Derivatives markets.
As volatility expanded and buying activity slowed further, traders increasingly focused on whether market conditions could stabilize before bearish pressure intensified even more.
LUNC bulls absorbed heavy liquidation pressure
At the time of writing, long traders experienced severe losses during the latest correction as liquidation imbalances widened sharply across exchanges.
CoinGlass analytics showed that long liquidations reached exactly $45.39K, while short liquidations totaled just $5.2K.
This large disparity reflected aggressive bullish positioning before the market reversed lower. Gate.io alone recorded $32.12K in long liquidations, while Bitget followed with $12.44K.
On the short side, Bitget contributed the largest share at $4.69K, whereas Gate.io recorded only $391.38.
This liquidation structure showed that leveraged bulls absorbed the overwhelming majority of the market stress during the decline.
LUNC lost channel support after rejection
LUNC price action weakened significantly after losing support from its ascending channel on the 4-hour chart.
The breakdown followed a sharp rejection near the $0.00011534 resistance zone, where sellers regained control and forced the price lower.
Price later dropped toward the critical $0.00008000 demand region, which previously acted as a breakout support area during April’s rally. Although buyers attempted to defend the zone, candles continued showing instability around support.
Therefore, the market structure no longer reflected sustained bullish continuation.
The ascending channel breakdown also shifted focus toward the $0.00007000 level below, which aligned with the next major support region on the chart.
Unless buyers reclaimed the former channel quickly, bearish pressure would likely continue dominating near-term direction.
Directional Movement Index data showed that bearish strength increased considerably during the latest decline. The ADX climbed near 49.9905, confirming that trend conditions remained strong despite the reversal.
Meanwhile, the negative directional index rose to 23.6506 and overtook the positive directional index, which weakened toward 22.2214. This crossover reflected growing seller control after buyers lost strength near resistance.
Funding flipped positive despite the decline
OI-Weighted Funding Rate data showed a surprising shift despite the aggressive correction.
Funding flipped positive to exactly 0.0268%, indicating that some leveraged traders still entered long positions during the decline. This behavior suggested dip-buying activity rather than complete market capitulation.
Earlier sessions mostly showed negative funding, reflecting dominant short positioning across derivatives markets.
However, the recent positive spike hinted that some traders anticipated a rebound near current support levels.
Even so, the broader structure still reflected elevated risk because the price continued trading below the former channel support.
Unless spot demand strengthened considerably, optimistic derivatives positioning alone would likely struggle to reverse current bearish conditions.
Conclusively, LUNC’s sharp breakdown reflected weakening buyer control after rejection near $0.00011534 resistance.
Liquidation pressure, channel failure, and strong bearish directional readings all reinforced the downside structure.
Although funding rates showed signs of dip-buying interest, the price still traded near a fragile support zone.
If buyers defend the $0.00008606–$0.000090 region successfully, LUNC could attempt a short-term stabilization move. However, failure to hold that range would likely expose the market to another decline toward $0.00007000.
Final Summary
- Terra Classic bulls absorbed most of the market damage, with long liquidations hitting $45.39K versus only $5.2K in short liquidations.
- Failure to hold current support levels could expose LUNC to another move toward the $0.00007000 region.
