Bombolo | News and Media
The price of Terra, a type of digital currency, has gone up by 85%, which has surprised many people. This increase is mostly because Terra Classic Labs, a company associated with Terra, invested a large amount of money (almost $500,000) into a specific type of digital money called USTC. This investment made investors more confident, leading to an increase in the price of Terra.
The value of USTC (a type of digital money) has increased significantly. It went up from about $0.01332 to $0.075 and is now trading at $0.04. Additionally, a large number of LUNC tokens (another type of digital asset) have been removed from circulation, reducing the total supply to 5.8 trillion. This reduction in supply has contributed to an increase in the price of LUNC. As a result, the price of LUNC has broken a downward trend that had been happening for several months since the network split
The price of LUNC has reached a crucial point, testing a level that's important for its movement. The trading volume, which is the amount of LUNC being bought and sold, has been very high, exceeding $2 trillion. This high volume suggests that buyers (bulls) are in control and indicates that the price could continue to rise for a significant period. Additionally, two indicators, the DMI and MACD, show positive signs. The DMI, which measures trend strength, is bullish, and the MACD, which reflects the momentum of price changes, has moved into positive territory for the first time since February 2023. These indicators together suggest a positive and potentially lasting trend in the LUNC price.
So, because of the positive trends we've seen, it's likely that the LUNC price will keep going up for a while. There's a chance it might reach and test a higher level of resistance at $0.0001897 in the next few days.
Even though the Terra community is trying hard to improve the situation, it's doubtful that the value of the stablecoin USTC will return to $1. The problem is that there's a lot of USTC and LUNC in circulation, creating uncertainty about the stablecoin's future. The value of USTC has dropped by more than 96% from its target value of $1 and has been consistently decreasing since the beginning of 2023. This downward trend might continue until the end of the year, with occasional increases in value along the way.
Summarizing the blog, recent positive developments and investments have fueled a notable increase in the value of Terra's USTC and LUNC tokens. While there's optimism for an extended upward trend, challenges remain, such as the large supply and the uncertainty surrounding the stablecoin's ability to return to its pegged value of $1.
Also Read: Should You Invest in LUNC? A Comprehensive Analysis