Over the past week, the Terra Luna ecosystem has taken the altcoin market by storm, with both LUNA and LUNC experiencing remarkable surges. Traders are becoming more bullish as these altcoins break several resistance levels in quick succession, indicating a comeback in buying interest. Yet, as Terra Luna Classic and LUNA reach new peaks, some short-term traders are looking for a chance to cash in and secure their gains.
LUNC’s Proposal Accelerates The Pump
The Terra Luna Classic community is voting on a soft fork to set a minimum validator commission and implement technical enhancements. This follows a proposal to increase the minimum deposit to 5 million LUNC to deter spam. The need for the soft fork arose after the validator commission was mistakenly set to 0% during an upgrade.
Till Ziegler advocated for a soft fork over a simple governance proposal. Subsequently, blockchain engineer Vinh proposed the v2.2.2 soft fork, encompassing the 5% commission and other upgrades. Voting ends on October 3, 2023, with a current unanimous 1.64% “Yes” vote share. Previously, the LUNC community decided to halt all Terra Classic USD (USTC) minting activities. Following these developments, LUNA and LUNC prices are now pumping hard as they successfully generated buying interest in the market.
On-chain data reveals a spike in short-liquidation for LUNC, surpassing $20K today. Additionally, LUNC’s Open Interest has climbed by $1 million, indicating growing trading activity. Yet, with the long-short ratio dipping to 0.67, a bearish correction seems likely.
Conversely, LUNA has experienced a bearish liquidation of close to $300K. Its Open Interest has jumped by $16 million in just two days, hinting at increasing 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, Terra Luna’s price rose by 37%, and LUNC’s price surged by 15.6%, suggesting explosive momentum in the Terra ecosystem. Analyzing the 4-hour price chart, the LUNC price broke above the crucial resistance of $0.000065 as buyers took advantage of triangle pattern closure at $0.000061. As of writing, LUNC price trades at $0.0000658, surging over 9.5% from yesterday’s rate.
Currently, bears are aiming to reverse the trend following a resistance at $0.000067. The initial downside support is located at $0.000064. A rebound from this level would imply a continuation in range-bound trading, just like LUNC previously initiated in a $0.00006 breakout. This could lead the bulls to aim for the $0.000072 price point.
On the bearish side, should the price slide below the 20-day EMA, it would signal declining bullish momentum. The LUNC price might first approach the $0.000058 benchmark, followed by a potential descent to the support of $0.000055. As the RSI level is dropping from the overbought region, short-term traders will likely exit, creating more downward pressure.