Binance to Launch New TerraClassicUSD (USTC) Trading Pairs in Wake of +70% LUNC Price Surge

 Key takeaways

• TerraClassicUSD (USTC) has been listed in two new pairs on the Binance spot market following a +500% move in recent days
• USTC can be traded with Turkish Lira (TRY) and First Digital USD (FDUSD) on Binance from 30th November onwards
• USTC finds itself at a pivotal point in terms of short-term price action, with key support needing to be held if it’s to sustain its recent movements

Former stablecoin USTC gains two new exchange listings on Binance

The price of TerraClassicUSD (USTC) is $0.052 following a monumental surge from the former stablecoin. USTC skyrocketed +500% between 25th and 27th November before retracing back to $0.03 — since then, USTC has bounced +71% to reach the current level.

USTC benefited from a major spike in trading volume in the hours before Luna Classic (LUNC) was listed on Binance Futures earlier this week. Both native tokens of the Terra ecosystem experienced a rapid surge, with LUNC climbing +60% thanks to the new futures listing.

Binance has now revealed that USTC will be given more trading pairs on the spot market which has led to the buy pressure being sustained. USTC is now tradeable directly with fiat currency in the form of the Turkish Lira (TRY) and an additional stablecoin through First Digital USD (FDUSD).

Both the USTC/TRY and USTC/FDUSD trading pairs will go live on Binance on 30th November, and the USTC/FDUSD pair will have zero trading fees on the exchange.

Terra Ecosystem developers seek to reclaim lost value following LUNA crash in 2022, Binance continues to support recovery efforts

While trading volume in the USTC/USDC spot market has tailed off slightly, it still remains much higher than it was last week. More trading pairs on the world’s largest centralized exchange (CEX) for digital assets will give traders and investors alike more exposure to USTC.

A disastrous 2022 for the Terra ecosystem saw the algorithmic stablecoin mechanism that pegged the value of USTC to the US Dollar (USD) completely fail. A “bank run” type event occurred in which staked assets were withdrawn from the ecosystem, and the subsequent sell-off led to USTC being de-pegged and LUNC suffering hyperinflation in a bid to correct the mechanism.

Both USTC and LUNC lost -99% of their value in a matter of days. Since then, developers in the Terra ecosystem have sought to regain some of the value that was wiped off the market. A burn initiative has seen more than 74 billion LUNC tokens be removed from circulation and the deflationary pressure this causes could help to increase the value of each token that remains over time.

Binance announced its support of the recent Terra Classic upgrade, and the announcements of several new trading pairs in the past few days further demonstrate the exchange’s willingness to support recovery efforts. On balance, the Terra ecosystem may be some way away from its former glory, but recent bullish developments could help improve price action.

The recent surge for USTC coincided with a major spike in trading volume on the USTC/USDC spot pair on Binance

Price prediction: USTC may seek to sweep range lows unless key support can be held

At the current price of $0.052, USTC is now +300% in the past 7 days. The move followed a breakout of the golden ratio on the Fibonacci retracement tool, which is marked at the 61.8% level. This level typically marks a key resistance, and assets can be seen as showing significant strength when they flip it into support as it marks a major bounce within the range.

Holding the golden ratio as support usually indicates that a breakout from the current range is imminent. Following price movements in recent days, the 61.8% level has become relevant once again within the new range.

The Fibonacci retracement from the peak on 25th November to the low on 27th November, and the subsequent bounce in the 2 days since, shows that USTC got rejected at the golden ratio. Price action for USTC may now hinge on whether or not the asset is able to break above the level in the coming days, otherwise it may seek to re-test support back at the range low.

Bottom line: USTC receives fresh catalyst in the form of more exchange listings, but is it enough to sustain its major run?

The Terra ecosystem is still alive and well thanks to efforts from developers within the community. While both native tokens remain significantly down when compared to their early 2022 price levels, each one has skyrocketed in the past 7 days.

Exchange listings can be hit-and-miss when it comes to providing sustained buy pressure. Cryptocurrencies can often enjoy a spike in the immediate aftermath of the new listing, but major pressure from short sellers often ensues when the candle gets overextended. Both LUNC and USTC may have already experienced this effect in the past couple of days after a rapid retracement followed the surge.

As things stand, USTC may have just hit the peak of a B-wave during an A-B-C correction. The brief recovery in the past 2 days may precede another leg down unless USTC can hold support around the current level, which means that the range low is the next key support level to watch out for.