Terra Classic Price Aims $0.0001 Breakout as USTC, LUNC Tokens Gain New Utility

The Terra Classic price shows sustainability above $0.00008 support as its USTC stablecoin gained new utility on the Cosmos blockchain, serving as collateral for Membrane’s CDT token. On Wednesday, the LTC price jumped 3.8% to $0.000087, while the market cap surged to $477.2 Million. An analysis of the 4-hour chart indicates that this altcoin’s ongoing consolidation could lead to a bullish continuation pattern, potentially setting the stage for a higher rally.

Terra Classic Price Displays Bullish Pennant, $0.000125 in Sight

Coingecko data shows that its current trend is shifting. The previous downtrend indicated by the blue falling channel is now showing signs of a potential reversal as the price broke out of the descending channel. LUNC price is also forming a bullish pennant, which is a continuation chart pattern. If it resolves to the upside, LUNC price may surge to $0.00012.

Terra Classic is trending below the 200-day but above the 50-day exponential moving average (EMA). The former provides some resistance at $0.000098, while the latter offers immediate support at $0.0000833. A strong support level exists around $0.00007000 that may sustain the price up.

The most recent candlestick patterns mainly consist of dojis, which show indecision, indicating a potential reversal. This suggests that buyers and sellers are currently in equilibrium, but the preceding breakout from the descending channel hints at a bullish bias.

The LUNC Relative Strength Index (RSI) is at 54, which is neutral but leaning towards the bullish side. A value above 50 typically indicates buying pressure. Similarly, the CMF (Chaikin Money Flow) is at 0.13, indicating that money is flowing into the asset, which supports the Terra Classic price bullish outlook.

LUNC’s trading volume is up 30.30% per CoinGecko, coinciding with the breakout from the descending channel. This suggests strong buying interest, further supporting a bullish reversal.

New USTC Utility Serves as Bullish Catalyst for LUNC Price

Membrane Protocol, a platform trying to create the perfect decentralized stablecoin, has received a proposal to use USTC as collateral for CDT, it collateral debt token.

Other chains ar are starting to see the valour of #TerraClassic Membrane has a proposal to use #USTC as collateral for $CDT.

Real utility for $ustc#lunaclassic #lunc $lunc $ustc #lunac #utility 🌙 pic.twitter.com/zpMI0RUfja

— Vegas (@VegasMorph) July 23, 2024

As of July 23, the proposal was passed with 100% For and 0% Against it. This is a big deal because other chains are beginning to see the value of USTC and the Terra ecosystem. 

This development comes amid speculation of a redemption arc for the Terra Classic ecosystem. Terraform Labs (TFL) was ordered to burn all their wallets, an action that may result in LUNC and USTC increasing in price. Despite much speculation, it is still not clear how much USTC and LUNC TFL hold in their wallets.

The next court dates for TFL bankruptcy proceedings are July 31 and August 7.

TerraformLabs company's next hearing dates are;

✔️ 9 July
✔️ 17 July
✔️ 31 July
✔️ 7 August

According to the agreement between TFL and SEC, TerraformLabs will cease all operations and close down.

Bankruptcy proceedings continue. TFL will burn all its funds. #LUNA will be… pic.twitter.com/6aeCCuVUxY

— Crypto News Portal (@TerraNewsEN) July 8, 2024

Bottom Line

The Terra Classic ecosystem is showing signs of renewed activity, with its stablecoin USTC gaining real utility as collateral to Membrane’s CDT stablecoin. This development has drawn attention to the LUNC token, potentially setting the stage for significant price movement. Terra Classic price may secure 33% gains in the short term before deciding its next move.