Terra Classic: Proposal that can make LUNC increase in price
Terra Classic [LUNC] is one of the most interesting cryptocurrencies on our watch list, especially in the first half of September. It has been floundering since then, as expected, but still There are opportunities around this cryptocurrency.
About a week ago, the LUNC Relative Strength Index (RSI) showed some weakness in the form of lower highs as prices moved higher. Thus, giving way to brief opportunities. That was about a week before the price was at $0.00035 but edged higher before finally giving way to the bears.
LUNC bottomed out at $0.0024 on September 15, which is a 59% retracement from the previous rally. 30% off the price at which we identify a short-term opportunity. The cryptocurrency's current levels have previously shown some resistance and could act as the next buy zone as demand picks up.
Ready to shift gears
The previous rally was triggered by LUNC's implementation of a 1.2% burn tax. The next rally may require an equally important development and one may already be prepared. This comes from a new proposal that seeks to reconnect with the Inter Blockchain Communication (IBC) protocol.
Max Callisto, the author of the proposal, had this to say about the benefits of reconnecting Terra Classic to the IBC protocol:
"By allowing IBC, USTC, and LUNC to be off-chain Terra Classic, they will be able to find their way back to Terra Classic, thus returning liquidity to the chain for other uses."
The development will facilitate higher demand and utility for both Terra Classic and the LUNC cryptocurrency. It will also support a healthy bounce after the recent pullback.
LUNC has shown signs of slowing down after retesting the 50% RSI. Their Money Flow Index (MFI) also shows that the flow of LUNC has turned in favor of the bulls.
The cryptocurrency has been trading along a descending resistance line for the past few days. Sufficient buying volume will allow LUNC to break the resistance.
Additionally, the volume of LUNC plummeted below $1 billion after peaking at $4 billion earlier. However, its volume has increased slightly over the past 24 hours, accompanied by an upward rally in the price.
LUNC's development has also been affected in recent days due to falling prices. The return to activity particularly related to IBC would be a healthy sign to support a change in sentiment.
Sep 17, 2022