Terra Luna Ecosystem Shakes Up the Altcoin Market: A Closer Look

Bombolo | News and Media

The past week has witnessed an incredible surge in the Terra Luna ecosystem, with both LUNA and LUNC making remarkable gains in the altcoin market. Traders are increasingly optimistic as these cryptocurrencies break through multiple resistance levels, signaling a resurgence in buying interest. However, as Terra Luna Classic (LUNC) and LUNA reach new heights, short-term traders are eyeing opportunities to secure their profits.

Also Read: Riding the Wave: Terra Luna Classic's 5% Surge Sparks Price Predictions

LUNC's Proposal Sparks a Frenzy

The Terra Luna Classic community is currently in the midst of a crucial decision-making process. They are voting on a soft fork proposal aimed at setting a minimum validator commission and implementing various technical upgrades. This move comes after a proposal to raise the minimum deposit requirement to 5 million LUNC was put forward to deter spamming. The need for a soft fork became apparent when the validator commission was mistakenly set to 0% during a previous upgrade.

Notably, Till Ziegler advocated for a soft fork instead of a simple governance proposal. Subsequently, blockchain engineer Vinh proposed the v2.2.2 soft fork, which includes the 5% commission and other important upgrades. The voting process is set to conclude on October 3, 2023, with the current unanimous vote share standing at 1.64% in favor of the proposal. In response to these developments, the prices of LUNA and LUNC have witnessed a significant surge, attracting considerable buying interest.

On-Chain Insights

Delving into on-chain data, we observe a substantial increase in short liquidations for LUNC, exceeding the $20,000 mark today. Additionally, LUNC's Open Interest has soared by $1 million, indicating a growing level of trading activity. However, it's important to note that the long-short ratio has dipped to 0.67, suggesting the possibility of a bearish correction.

Conversely, LUNA has experienced a bearish liquidation of nearly $300,000. Its Open Interest has surged by $16 million within just two days, hinting at heightened price fluctuations around resistance levels. Nevertheless, LUNA is also witnessing a minor bearish correction as profit-taking by buyers continues.

Also Read: Predicting Terra Classic's (LUNC) Future: Leading Top 100 Cryptos in Gains

What Lies Ahead for LUNC's Price?

In the past week, Terra Luna's price has surged by an impressive 37%, while LUNC's price has seen a notable gain of 15.6%. This indicates a rapid momentum shift within the Terra ecosystem. A closer look at the 4-hour price chart reveals that LUNC's price broke through the critical resistance level of $0.000065 as buyers capitalized on a triangle pattern closure at $0.000061. At the time of writing, LUNC is trading at $0.0000658, reflecting a remarkable 9.5% increase from the previous day.

As of now, bearish traders are targeting a trend reversal following resistance encountered at $0.000067. The initial support level on the downside can be found at $0.000064. A rebound from this level could indicate a continuation of range-bound trading, similar to the breakout LUNC previously initiated at $0.00006. This could potentially lead the bulls to target the $0.000072 price point.

However, on the bearish side, if the price slips below the 20-day Exponential Moving Average (EMA), it may signal a decline in bullish momentum. In such a scenario, the LUNC price could approach the $0.000058 benchmark, with the potential for further descent to the $0.000055 support level. As the RSI (Relative Strength Index) drops from the overbought region, short-term traders may decide to exit their positions, exerting additional downward pressure.

The Terra Luna ecosystem's recent surge in performance has captivated the altcoin market's attention. LUNC's proposal for a soft fork and technical enhancements has added fuel to the fire, driving up prices and trading activity. While the short-term outlook remains uncertain, traders and investors continue to closely monitor the price movements of LUNA and LUNC, ready to seize opportunities in this dynamic market.

Also Read: Should You Invest in LUNC? A Comprehensive Analysis

FAQs

1. What is Terra Luna Classic's soft fork proposal about?

   Terra Luna Classic is voting on a soft fork to set a minimum validator commission and implement technical upgrades, following a previous mishap where the validator commission was set to 0%.

2. When does the voting for the soft fork end?

   The voting for the soft fork is scheduled to conclude on October 3, 2023.

3. What impact has the proposal had on LUNA and LUNC prices?

   The proposal has generated significant buying interest, resulting in substantial price increases for both LUNA and LUNC.

4. What does the long-short ratio indicate for LUNC?

   With a long-short ratio of 0.67, a bearish correction is a possibility for LUNC.

5. Where might LUNC's price be headed in the near future?

   LUNC's price could either continue its upward trend towards $0.000072 or face a bearish correction, possibly descending to $0.000055, depending on market dynamics.