last week Terra Classic ecosystem has taken the altcoin market by storm. Both LUNA and LUNC experienced significant increases. Investors became even more bullish as these altcoins broke several resistance levels in a row, indicating a return in buying interest. However, as Terra Luna Classic and LUNA reach new highs, some short-term traders are looking for a chance to cash out and secure their gains.
LUNC’s Offer Accelerates Ascension
The Terra Classic community is voting on a soft fork to determine a minimum validator commission and implement technical improvements. This follows a proposal to increase the minimum deposit to 5 million LUNC to deter spam. The need for the new fork arose after the validator commission was accidentally set to 0% during an upgrade.
Till Ziegler defended the soft fork through a simple governance proposal. Blockchain engineer Vinh then proposed the v2.2.2 soft fork, which included a 5% commission and other upgrades. Voting will end on October 3, 2023, and it currently has a unanimous 1.64% “Yes” vote rate. Previously, the LUNC community had decided to stop all Terra Classic USD (USTC) minting activities. Following these developments, LUNA and LUNC prices are currently pumping hard as they have successfully created buying interest in the market.
On-chain data reveals an increase in short liquidation for LUNC, with over $20k today. Additionally, LUNC’s Open Interest increased by $1 million, indicating increased trading activity. Still, with the long-short ratio falling to 0.67, a downside correction looks likely.
Conversely, LUNA experienced a bearish liquidation near $300k. Open Interest increased by $16 million in just two days, indicating increased price fluctuations near resistance points. However, LUNA is also seeing a minor bearish correction as buyers continue to book profits.
What’s Next for LUNC Price?
Over the last seven days, the price of Terra Luna has increased by 37% and the price of LUNC has increased by 15.6%. This showed that there was an explosive momentum in the Terra ecosystem. When the 4-hour price chart is examined, buyers are taking advantage of the triangle formation close at $0.000061. Moreover, LUNC price climbed above the important resistance at $0.000065. As of writing, LUNC price is trading at $0.0000658, up over 9.5% from yesterday’s rate.
Currently, the bears are aiming to reverse the trend after a resistance at $0.000067. The first downside support lies at $0.000064. A rebound from this level would imply a continuation in the range-bound trade, just as LUNC previously initiated with a breakout of $0.00006. It is possible that this could lead the bulls to target the $0.000072 price point.
On the bearish side, if the price falls below the 20-day EMA, it will signal that the bullish momentum is waning. It is possible for the LUNC price to approach the $0.000058 benchmark first. Then, a potential decline to the $0.000055 support is possible. As the RSI level declines from the overbought zone, short-term traders will likely exit and create further downside pressure.