Terra Luna Classic (LUNC) And USTC Price Correction Takes Halts, Will Recovery Return?
Amid the late November rally in the crypto market, the tokens of Terra Classic ecosystem showcased exceptional performance. However, the post-rally correction in the majority of major coins have triggered a significant downswing in LUNC and algorithmic stablecoin USTC. Within a fortnight, the LUNC price dropped from $0.00028 to $0.00016, registering 42.6% loss, while USTC fell from the $0.069 to $0.036, accounting for a 48.3% drop.
The initial price surge came as a result of a recent Fed announcement, boosting traders’ confidence.
However, in contrast to the price drop witnessed by the Terra Classic-backed tokens in recent days, the announcement of unchanged interest rates accompanied by a colossal burn proposal appears to have jacked up the LUNC and USTC prices.
Why The Price Upswing?
The price upswing witnessed by USTC is primarily attributed to the recent proposal of burning 800 million USTC tokens via Lunanauts, Terra Classic Luna validators. This comes as an effort by the Terra community to build further support for their token, as the price dropped significantly recently.
In addition, another chronicle appears to have bolstered the price pump witnessed by the Terra Classic tokens.
Amid the U.S. Federal Reserve’s recent announcement of unchanged interest rates for the three times consecutively, traders’ and investors’ confidence in the crypto market appears to have skyrocketed. Concerning this, the LUNC price and the USTC price seem to have soared today.
Also read: AI Tokens Rally As Cathie Wood’s ArkInvest Lauds OpenSource Models Over ChatGPT
LUNC and USTC Price Analysis
As of writing, the Terra Classic price noted a drop of 1.99% over the past day, currently trading at $0.000163. However, the ongoing correction found suitable support at $0.00016 aligned with the 50% Fibonacci retracement level. This combined support could assist buyers to counter attack and reclaim loss ground.
Moreover, even the USTC price recorded a marginal jump of 1.4% in the past 24 hours, currently resting at $0.0363. The current retracement stalled at $0.035 is trying to recuperate the exhausted Bullish momentum. A potential reversal could surge the USTC price back to challenge the $0.07 mark.
Besides, the price soar witnessed by the tokens today comes primarily in alignment with the recent USTC burning chronicle escorted by the Federal Reserve’s announcement.
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