Analyst States Why Terra Classic (LUNC) Needs To Hold Above 200 Moving Average (MA)

Terra Classic (LUNC) experienced a significant price surge of over 30% in just one month, a testament to the ongoing efforts of the community to revive the values of LUNC and USTC back to $1.

LUNC Breaks 200 Moving Average

Prominent LUNC trader Derek, in a recent tweet, pointed out that the cryptocurrency, which had been depressed for over a year, recently broke the 200 Moving Average (MA). This bullish divergence marks a significant milestone for LUNC, indicating a potential reversal of its downward trend.

Read Also: Terra Classic (LUNC) Is Projected To Face 4 Years of Price Stagnation Before 100% Crash By 2030

While this positive development is encouraging, Derek emphasized the importance of LUNC maintaining some support above the 200MA line. However, he noted that even a slight dip below the line would not be detrimental, as the Relative Strength Index (RSI) remains strong at 58, suggesting continued bullish sentiment.

Impressive Gains and Recent Performance

LUNC’s recent price action reflects this optimism, with the cryptocurrency amassing over 30% gains in 30 days. Additionally, LUNC has experienced a 13% increase in price over the past two weeks.

Despite these positive trends, LUNC has faced some minor setbacks, with its price declining by 3.2% and 4.8% in the past 24 hours and seven days, respectively. At the time of writing, LUNC was trading at $0.00007336, according to data from CoinGecko.

Community Efforts to Restore LUNC and USTC Prices

The Terra community has not yet achieved significant success in reviving LUNC and USTC to their pre-collapse values. However, the community remains resilient in its efforts to revitalize the network and restore LUNC and USTC to their former glory.

The community has initiated a new proposal that aims to revitalize USTC and LUNC prices to $1, with a focus on safely re-enabling the market module. The market module was disabled in May 2022 following the collapse of the Terra ecosystem.

According to the proposal, developers aim to increase rewards and mitigate risks, specifically the heightening of the USTC and LUNC supply via unintended minting.

Read Also: Terra Classic (LUNC) Algorithmic Price Prediction (2024 to 2030)

Positive Developments and Auditing

These developments follow the revival of a critical function in Terraport, a decentralized application used to stake supported assets on the network. Additionally, leading blockchain security company CertiK announced that it is currently auditing the service and will release the report soon.

The ongoing efforts of the Terra community, coupled with the recent price surge and the development of new proposals, suggest that LUNC and USTC may be on their way to recovery.

However, it is important to note that the cryptocurrency market is volatile and prone to unpredictable movements. Investors should exercise caution and conduct thorough research before making any investment decisions.

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