Terra Classic USD (USTC), the algorithmic stablecoin that fell dramatically earlier this year, has shown signs of life with a 7% price increase over the past three days. This upswing comes after a prolonged period of decline, with USTC dropping over 50% since January 2024.
Javon, a well-respected crypto analyst, believes the recent surge could be the start of a significant rally. He points to a bullish divergence pattern on USTC’s chart, a technical indicator that often precedes price increases. Additionally, the formation of higher lows suggests an underlying uptrend, potentially leading to substantial gains.
Javon has set a breakout target of $0.08097 for USTC, representing a potential upside of over 360% from its current price. The chart analysis also reveals a series of higher lows, a crucial element for maintaining upward momentum. This pattern indicates buyers are entering the market at progressively higher levels, suggesting increased demand for USTC.
However, despite the optimistic outlook, challenges remain. USTC is currently hovering at a critical support level established in April 2024. A daily candle closing above this level could trigger a move towards resistance levels defined by the 50-day and 100-day Exponential Moving Averages (EMAs). Conversely, a breach of this support could lead to a drop towards $0.012.
Technical indicators present a mixed picture. The Moving Average Convergence Divergence (MACD) indicator hints at a potential shift toward bullish territory, but the narrow gap between the MACD line and the signal line suggests weak momentum. This raises the possibility of a reversal if selling pressure intensifies.
Furthermore, the Awesome Oscillator (AO) and Chaikin Money Flow (CMF) indicators currently reflect bearish sentiment. Both momentum and volume indicators point towards continued selling pressure, with the AO positioned below zero and the CMF registering a negative value of -0.08. This combination suggests the market favors sellers, and a potential bullish reversal hinges on the current support level holding and the daily candlestick closing above its present position.
Overall, USTC’s recent price increase offers a glimmer of hope after a tumultuous period. While analyst predictions suggest significant gains, several hurdles need to be overcome before a sustained uptrend can be confirmed. Investors should closely monitor technical indicators and price movements to make informed decisions regarding USTC.
