The Terra Luna Classic price has surged by an impressive 18% in the past 24 hours, reaching $0.00020387 following gains yesterday for the cryptocurrency market as a whole. Its current price means that it has now risen by 30% in the past 30 days, driven mostly by a decline in market bearishness and a corresponding increase in bullishness.
LUNC is likely to show more upwards volatility as the market continues to recover throughout the year, with the altcoin benefitting from attempts by its community to reduce its supply. However, with this same community often in conflict with each other over how best to support the Terra Luna Classic ecosystem, LUNC’s recovery cannot be entirely assured.
LUNC’s chart reveals a sharp increase in momentum. Its relative strength index (purple) has jumped from under 30 a couple of days ago to over 70 now, signaling strong buying pressure that could still continue for a little while yet.
Promisingly, the coin’s 30-day moving average (red) is just about to ascend over its 200-day (blue), forming a golden cross that may signal a significant breakout.
Indeed, this suspicion is supported by the fact that LUNC has passed the $0.0002 mark, reaching its highest level since November (i.e. before the FTX collapse). That it’s broken through this resistance level could mean it has more gains in store in the near future.
It’s also likely that LUNC has gains in store over the longer term, with the Terra Luna Classic community constantly striving to propose ways to reduce its supply and boost its price.
This includes a recent proposal to re-peg the price of (sister stablecoin) USTC to $1, something which would likely have a positive impact on LUNC’s price. This is because such a re-peg would necessitate a massive, large-scale burn of LUNC tokens.
At the moment, it looks like this proposal is set to pass. This is a very encouraging development and goes some way to accounting for LUNC’s rally today.
Recent weeks have also brought other proposals, some of which have been passed. This includes an update to the Terra Luna Classic protocol that provides for whitelists in relation to its native on-chain tax burn. Basically, such whitelists can exempt certain parties from the on-chain burn, a change that Binance had requested so that it could resume its own regular burn of trading fees.
Because of this, LUNC burning is likely to begin speeding up again. As of writing, around 38.5 billion LUNC have been burned to date, out of a total circulating supply of 6.87 trillion.
Not only that but the Terra Luna Classic community is also involved in efforts to enhance the utility of the network. This includes proposals to introduce greater interoperability between Terra Luna Classic and Cosmos, mostly via an update to Terra’s implementation of Tendermint.
All of these developments point towards a rising LUNC price over the medium-to-long term. $0.0002 is already a good start, but there’s no doubt that the community will be eyeing $0.001 and then $0.01, and so on.
Such gains are potentially only a matter of time, yet it’s worth pointing out that efforts to reach such targets may be hampered by ongoing discord within the Terra Luna Classic community. Such discord remains mostly peripheral, yet it could potentially become more serious if attempts to boost LUNC’s price significantly fail and the community start to diverge on new options.
For instance, the end of January witnessed a new proposal that calls for the end of payments to developer Jacob Gadikian, apparently for “attacking and slandering validators on the Luna Classic Blockchain.”
Voting is still ongoing with this proposal. If accepted, it would mean that Gadikian is effectively blacklisted from contributing to Terra Luna Classic, something which would be negative for LUNC insofar as it may deter developers from contributing to its network.
These misgivings aside, the future looks relatively bright for LUNC. The re-peg plans seem to be gaining momentum and support, and if accepted, it could be the catalyst for a big appreciation in the altcoin’s price.
Buy Terra Luna Classic Now
While the picture is improving for LUNC, it may still take several months for it post some substantial returns. So far anyone looking for high-potential alternatives, we’ve listed the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects, so be sure to check back for new entries.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
A quick 3min read about today's crypto news!
A quick 3min read about today's crypto news!