LUNC price forecast as USTC stablecoin rapidly increase in value

Although the Terra Classic USD recovered somewhat. On Thursday the price of LUNC still only traded within a consolidation phase around $0.00025; this price is nearly 40% lower than September’s high point. Here are a few points to note:

• Terra Luna Classic is one of the Terra stablecoins. Each Terra stablecoin is pegged to a different fiat currency like the US dollar, euro, Korean won, etc.
• The Terra network recently launched its new TerraUSD (USTC) stablecoin. Which has been rapidly increasing in value and currently boasts a market cap of over $40 million.
• As USTC gains popularity, it may affect the demand for Terra’s other stablecoins like LUNC and ultimately impact its price.
• However, Terra’s overall success in the stablecoin market may also lead to an increase in demand for all Terra stablecoins; including LUNC.

Terra Luna Classic pulls back

The LUNC price has not gone up or down much recently because investors are focused on the new burn rate mechanism. This is a system that was passed by community members.

The members voted to diminish the LUNC burn rate for transactions from 1.2% to 0.2%. The burn rate is a process that strengthens the value of cryptocurrency by lowering the total available supply. So, at this reduced rate, it will take about thirty years to “burn” ten billion LUNC coins.

The vote was critical because an overwhelming majority of token holders participated. An estimated 83% per cent voted, which is astonishing.

So far, more than 22 billion LUNC tokens have been burned- this is equal to 0.32%. On Thursday alone, we saw around 242k coins being burned. This drop in the circulating supply has caused the bonded and non-bonded tokens to move at a ratio of 10.6%.

The number of total LUNC addresses has decreased gradually over time. There are now around 11,718 active addresses; this is lower than the record-high of 11,846.

The Terra Classic Dollar has lost value as investors put their money into the ongoing recovery of the Terra Classic USD.

In comparison, USTC has increased in worth by 13% within the past day. Right now it is being traded at $0.039, though this is still quite low when considering its usual key level of $1.

LUNC price prediction

Data Source: Tradingview

Recently, Terra Luna Classic’s price has shown a strong bearish trend on the hourly chart. This begs the question: is it safe to purchase LUNC now?

The coin is currently above both the 25-day MA and 50-day MA, while the Relative Strength Index (RSI) has retreated into positive territory. This all points to a potential increase in price shortly.

Most likely, the coin will continue to decline as sellers target the next key support level. The next resistance level to watch will be $0.00024. A move above the resistance level of $0.00026 would mean that the bearish view is no longer accurate.

Summary

The Terra network has seen a surge in adoption recently, with the USTC stablecoin rapidly increasing in value. This could potentially lead to increased usage and demand for LUNC as it is needed for staking on Terra.

If Terra continues to see growth and adoption, LUNC may have a potential upside in the long term. However, investors should closely monitor Terra network developments and adoption rates before making any investment decisions.

Overall, the current LUNC price forecast remains uncertain and investors should exercise caution.

It is important to conduct thorough research and analysis before making any investment decisions.

Despite LUNC present uncertainties, do you foresee its value rising soon? Please hit the comment section and share your thought with us!