The Terra Luna Classic price has surged by 50% over the last 24 hours to trade at $0.0001176 as of 2:30 a.m. EST.
LUNC began the uptrend on Friday, Nov. 24 soaring as much as 70% to set a swing high at $0.000124, levels last seen in April, during the early Asian trading hours on Monday.
Terra Classic’s meteoric rise has been orchestrated by a couple of factors including the impending extradition of the Terraform Lab’s co-founder Do Kwon from Montenegro to either the United States and South Korea. This might have sparked hope from the former investors in the Terra ecosystem on the possible recouping part of the over $40 billion lost after the collapse of the network in May last year.
Perhaps the most probable explanation of the latest rally in the price of LUNC is the latest strategic investment by Terra Classic Labs (TCL), the organization committed to revitalizing the Terra Classic ecosystem.
The organization announced that it had acquired a substantial 25.6 million USTC worth about $500,000 at an average price of $0.021 per USTC. This, coupled with 1.6 million USTC being burned on-chain on Sunday, has played a pivotal role in this surge.
~ 1.6M $USTC burned on-chain yesterday
— Terra Classic Foundation (@TCF_Terra) November 27, 2023
This move has not only injected confidence in the Terra Classic community but has propelled USTC to an extraordinary price of $0.06142 and a market value of approximately $593 million, according to data from CoinMarketCap.
The symbiotic relationship between TerraClassicUSD (USTC) and Terra Classic (LUNC) is evident in their intertwined destinies. As the value of USTC increases, LUNC’s value also increases. This is even reinforced by their intertwined utilities and use cases within the ecosystem as explained by the Foundation.
Staking rewards on Terra Classic comprise both $LUNC and $USTC.
If the value of $USTC goes up, staking yield for $LUNC goes up.
If the value of $USTC goes down, staking yield for $LUNC goes down.
It’s a simple equation, really.
So let’s not divide and rule, but rather unite…
— Terra Classic Foundation (@TCF_Terra) November 23, 2023
This positive momentum is rooted in the belief that USTC’s recovery will breathe new life into the broader Terra Classic ecosystem.
LUNC Price Analysis – Where Next?
At the time of writing, Terra Luna Classic was trading at $0.0001176 and was fighting immediate resistance from the $0.000120 psychological level. A decisive daily candlestick close above this level would see the token rise toward Monday’s intraday high at $0.000124.
Above that, the next resistance could emerge from the $0.000137, embraced by the 127.2% Fibonacci retracement level, and the $0.00015 psychological level. Overcoming these barriers would suggest the ability of the buyers to sustain the higher levels. The token would then enter into a bull rally.
LUNC/USD Daily Chart
Several technical indicators supported this bullish narrative for LUNC. The Relative Strength Index (RSI) maintained its upward trajectory. Its position at 80 in the overbought region suggested that the buyers were still in control of the price.
The Directional Movement Index (DMI) also reinforced the positive outlook for the Terra Luna Classic price. The positive directional Line (+D1) at 44 was way above the negative directional line at 6. The value of the average directional line at 45 suggested that the uptrend was very strong.
Conversely, the RSI showed that LUNC was overbought. This implied that the ongoing rally could soon run out of steam as buyer exhaustion and profit-booking kicks in. If this happens, the price could turn down from the current level with key areas to watch on the downside being the 78.6% retracement level at $0.0001131 and the $0.00011 psychological level.
Below that, the 50% extension level at $0.000985, the $0.00090 support level and the 23.6% retracement level at $0.00085 are buyer congestion areas to look out for.
Breaching these levels could see LUNC drop further to revisit $0.00073. Such a move would complete the retracement taking the token back to the level prior to the start of the latest rally as well as undo all the recent gains.
The post Terra LUNA Classic Price Prediction: LUNC Soars 50% to $0.0001176, Here is Why appeared first on Analytics Insight.
Source: https://www.analyticsinsight.net/terra-luna-classic-price-prediction-lunc-soars-50-to-0-0001176-here-is-why/