Terra Luna Classic price pumped hard on Thursday and Friday this week following news that USTC was going to be repegged. The community has been seeking validation following the collapse of UST last May.
Following the crash that nearly toppled the entire cryptocurrency market, sending crypto giants like Three Arrows Capital and Celsius Network out of business, the community voted in favor of creating a new token. This is how Terra Luna 2.0 (LUNA) was born, and still accommodates the majority of users in the ecosystem.
However, some people stayed with the original token, which later came to be recognized as Terra Luna Classic (LUNC). Since then, the LUNC community has always felt like it needs to prove itself in the market. However, the chain appears to have the full support of Binance, the largest exchange in the market by daily trading volume.
Binance has committed to helping the Terra Luna Classic community rebuild itself to its former glory. The exchange continues to support the LUNC burn program meant to reduce the network’s total supply.
Terra Luna Classic Price Explodes Past $0.0002 As Proposal to Repeg LUNC Passes
The LUNC community has overwhelmingly voted, passing a proposal to restore the fallen UST, although now it’s called USTC. Those in charge of developing and maintaining the blockchain hope the governance approval will allow them to relink USTC to its dollar peg value using various proposed strategies.
To bring down the risk of instability, the development team has proposed holding USTC’s reserves in multiple assets and currencies. It will also set up a buyback and burn mechanism to help with regulating the supply and demand of the stablecoin.
Another strategy would be to pay out interest in US dollars as a means of incentivizing holders to keep USTC even when it is below its peg. On the other hand, there will be an interest fee charged for the time the stablecoin is above its peg.
The Terra Luna Classic community is also planning to integrate numerous oracle systems to deliver real-time exchange data. According to the proposal, this will significantly bring down the risk of manipulation associated with using one oracle.
Where Is Terra Luna Classic Price Headed?
Terra Luna Classic price rallied by more than 20% on Friday following the news that USTC would be repegged to its former dollar value. For the first time since early November, LUNC reached highs above $0.0002.
“Today #LUNC pumped hard & after long time reached 0.0002 price & this was waited by people & Short sellers must got rekt,” Saqlain Ali reckoned via Twitter.
Although the token tagged highs of $0.0001963, there was a sharp correction possibly due to efforts to lock in gains. In a red candle wick, Terra Luna Classic price dipped to $0.0001870 before reclaiming support above $0.00019, represented in the lower yellow band on the four-hour chart.
Terra Luna Classic needs to gather enough liquidity above that support before staging another attack on the seller congestion at $0.000021 – upper yellow band. Otherwise, the token would be forced to consolidate the gains between the two bands as bulls and bears engage in a fierce tug of war for a breakout.
The formation of a golden cross pattern on the same four-hour chart reveals that the anticipated outcome could be encouraging to investors. This pattern appeared when the 50-day Exponential Moving Average (EMA) (in red) crossed above the 200-day (in purple).
Traders look forward to golden cross patterns because they validate the longevity of an uptrend. Furthermore, they often mark the beginning of a bull market for other assets like Bitcoin.
Nonetheless, investors must be cautious to avoid sudden bull traps, especially with the Moving Average Convergence (MACD) indicator likely to have exhausted its momentum above the mean line.
That said, traders should watch closely the movements in the momentum indicator. A sell signal would manifest as the MACD line in blue crosses below the signal line in red.
Although it may not be prudent to trade against the trend, traders who may be looking forward to shorting Terra Luna Classic price may do so if LUNC price slides below $0.00019, or if you like the lower yellow band. Even then, they must make sure the MACD line in blue is below the signal line in red and drop toward the mean line at 0.00.
Buy Terra Luna Classic Now.
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