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

Evans Karanja
Updated
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Terra Luna Classic Price Eyes 50% Surge Ahead of Bankruptcy Hearing Today

Highlights

  • Membrane Protocol has received a proposal to use USTC as collateral for its CDT stablecoin.
  • As of July 23, the proposal was passed with 100% For and 0% Against it.
  • The next court dates for TFL bankruptcy proceedings are July 31 and August 7.

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.

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Terra Classic Price Displays Bullish Pennant, $0.000125 in Sight

Terra Classic Price
Terra Classic Price Chart

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.

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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.

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.

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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.

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Frequently Asked Questions (FAQs)

1. Why was Terraform Labs ordered to burn all their walltes?

Terraform Labs was ordered to burn all tokens in their wallets as part of their efforts to stabilize the value of Terra Classic (LUNC) and TerraUSD (USTC). This action is part of a broader strategy to reduce the circulating supply of these tokens, potentially boosting their value.

2. Can LUNC price recover?

Yes, LUNC price can recover owing to the fact that the project is now community driven and shows bullish prospects.

3. What was the highest price for LUNC?

Two years ago LUNC soared to an all time high of $119.18.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.