Terra Classic (LUNC) experienced a 14% surge in its price within the last 24 hours, reaching the $0.00011 mark. Since hitting a low on Thursday, LUNC has risen by 25%, drawing renewed interest from traders despite its turbulent history in 2022. Simultaneously, cryptocurrency miners are anticipating the launch of Bitcoin Minetrix (BTCMTX), an Ethereum-based project aimed at simplifying the process of acquiring BTC mining rewards.
The recent uptick in LUNC‘s price coincides with a significant increase in derivatives trading volume. Coinglass reports a surge in daily trading volume from $4.78 million on February 1 to $9.95 million on February 4, marking a 108% rise. Additionally, CoinMarketCap data indicates a notable increase in spot trading volumes, indicating growing investor interest in LUNC’s price movements.
This renewed interest appears linked to LUNC’s bullish breakout following the confirmation of a double-bottom pattern on the daily price chart. Over the past week, LUNC found support at $0.000093 twice before experiencing a substantial upward surge. With the token now maintaining itself above the crucial psychological level of $0.00010, analysts and investors are eyeing further upward targets.
However, bulls face a significant obstacle in the form of the 50-day exponential moving average (EMA) on the daily timeframe, which has historically served as a dynamic resistance level. Presently, this EMA hovers just above LUNC’s current value, posing a challenge for continued price growth.
Terra Classic’s Comeback Story
Terra Classic, born from the original Terra blockchain’s native token LUNA, faced a catastrophic collapse in 2022 following the devaluation of its algorithmic stablecoin UST. The ensuing “death spiral” resulted in LUNA’s value plummeting by over 99%, leading to a rebranding to LUNC and the introduction of a new Terra chain devoid of the problematic stablecoin. Given its tumultuous history that reverberated across the crypto market, LUNC was largely disregarded by investors, making its recent double-digit price surge all the more unexpected.
The surge in LUNC’s price seems driven solely by speculative interest, lacking any substantial underlying catalysts. Despite the skepticism prevailing among most analysts regarding the token’s viability, some traders are wagering on the slim possibility of a miraculous recovery for LUNC.
Notably, prominent trader Javon Marks has expressed an optimistic outlook for LUNC’s price, maintaining that we are still amidst a “bullish pattern.” Whether LUNC sustains its upward trajectory remains uncertain, but the prevailing market sentiment indicates a growing curiosity surrounding this once-dismissed token.