Despite USTC’s recent massive surge, the future of the stablecoin of the Terra Classic ecosystem is still uncertain because of the inherent volatility of the crypto market. Many are curious if the stablecoin and the Terra ecosystem can sustain its upward momentum.
In a recent video, the crypto analyst on the YouTube channel Cilinix Crypto expressed cautious optimism about USTC’s recent bullish momentum. USTC has climbed from lows under $0.03 to current levels after recently touching $0.07. However, the analyst warned that emerging weakness in Terra Classic could foreshadow trouble for USTC.
Cilinix Crypto’s Views on USTC
According to him, LUNC is bearish, and he believes its price will fall soon. Because of the correlation between them, he also expects USTC to fall. This expectation comes despite the massive gains both cryptocurrencies have experienced recently. A bearish future mirrors ChatGPT’s uncertainty about USTC reaching $1.
The analyst also pointed to positive signs in USTC price action so far, including rising open interest and funding rates. He highlighted the wide trading range that has now developed between resistance around $0.063 and support around $0.047.
He believes the most prudent move for traders is to wait for a clear breakout above or below these levels before determining the next major directional move.
The analyst wrote, “If USTC breaks above 6.3, then you know that this bullish momentum held up and that there’s momentum and that USTC will probably get up towards 7.5 again.” He also adds, “If USTC breaks down below 4.7, it will probably drop back down towards 3.5 and 3 cents.”
The analyst describes this as a bearish breakout, with USTC losing its bullish momentum. This lost momentum will make USTC bearish in the short term, leading to a price consolidation.
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Is a Breakout Likely?
Based on current market signals, the analyst said the odds likely favor an upside breakout and continued bull run. However, the growing correlation with Terra Classic leaves the door open for a potential bearish reversal if decoupling does not occur.
He believes a bullish breakout is the most likely scenario but cautions viewers to wait for a break of the $0.063 or $0.047 resistance. This breakout will confirm a bullish or bearish future for USTC.
Overall, the future of USTC is uncertain and will depend on several factors, including the performance of LUNC and the ability of USTC to decouple from its counterpart. However, with Binance recently adding USTC trading pairs, the future might be bright for the stablecoin.