Terra Classic (LUNC) Price Bullish Strategy Eyeing $1 Depends 3 Key Factors

The Terra Luna Classic community’s focus on revamping the network continues despite recent volatility in the market. Like many of its peers, Terra Classic (LUNC) price boasts a noteworthy 83.5% increase to $0.0001945.

However, in the last 24 hours, LUNC dropped by 2% mirroring the high volatility after Bitcoin tumbled from its new all-time high below $60,000.

As reported by CoinGape, a new proposal has come up to deter a potential exodus of validators, particularly smaller validators. In the long run, the proposal will enhance security and bolster decentralization as more validators join the protocol.

Terra Classic Price Prediction: LUNC At Crossroads

LUNC price upholds short-term support reinforced by the ascending green-colored trendline. Bulls have been trying to flip the 20-day Exponential Moving Average (EMA) resistance following the early week drop to $0.0001576.

On a wider technical scope, Terra Classic oscillates between a stronger 0.618 Fibonacci ratio support and a 0.382 Fibo ratio barrier.

A break to either side of the narrow range ($0.0001846 – $0.0002) would determine where LUNC heads following the current price doldrums.

The prevailing technical structure is neither bearish nor bullish based on the outlook of the Relative Strength Index (RSI). Its position at 51 suggests a stalemate that is yet to be resolved.

Terra Classic (LUNC) price needs a push out of the range to uphold the narrative. In case the uptrend takes longer to materialize, LUNC might settle for dips below the range support to sweep fresh liquidity to power the next leg up above $0.0002.

Therefore, dips may not be a bad idea, especially if traders incorporate a dollar-cost average strategy to maximize gains in the medium term.

An RSI bullish crossover will signal the return of the bulls in the short term. Should Terra Classic close above the ascending trendline while flipping the 20-day EMA into support, further price increases will likely follow.

Note that despite the correction from $0.0002551 – the highest point in March, LUNC still holds above two other important moving averages including the 50-day EMA and the 200-day EMA (the red and purple lines on the chart).

Key factors likely to drive Terra Classic (LUNC) price to narrow the massive gap to $1 include the fast-moving token burn mechanism backed by the World’s largest exchange by traded volume, Binance.

Terra Classic’s circulating supply has shrunk to 5.81 trillion compared to that total supply of 6.8 trillion. Some LUNC tokens are locked in staking platforms, explaining the difference between the two figures.

The Terra Classic community has a long way to go in reducing the circulating supply to boost LUNC price to $1. A the same time, it can be seen that efforts have increased over the past months with multiple proposals being passed to secure the future of the project that hopes to regain its lost glory.

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John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.