Terra has raised many eyebrows recently with an 85% jump in prices. The rise in the price has been mainly fueled by the recent developments within the Terra Ecosystem. Terra Classic Labs has made a strategic investment of nearly $500,000 into its algorithmic stablecoin, USTC. This influx of capital could have induced huge confidence among investors, which has boosted the LUNC price rally recently.
With this notable rise in the USTC’s value, it has also been recorded that it jumped from levels around $0.01332 to $0.075 and is currently trading at $0.04. Besides, over 78 billion LUNC tokens have also been destroyed, causing a notable drop in supply to 5.8 trillion, which has also fueled the price rally. With this, the LUNC price has broken the multi-month descending trend that it has carried ever since the network was forked.
Is this the start of a fresh upswing or yet another short-term rally that may attract the bears to squeeze the profits?
The LUNC price successfully tests the immediate resistance that has been one of the most pivotal levels. The volume that surged beyond $2 trillion remains in favour of the bulls, which signals that the upward movement could prevail for a long time. Besides, the DMI is bullish as the ADX displayed a bullish reversal and the +Di remains elevated. Moreover, the MACD surged within the positive range for the first time since February 2023.
Therefore, the upward momentum could prevail for a long time, suggesting the LUNC price may continue to move upward and eventually test the upper resistance at $0.0001897 in the coming days.
Despite the serious efforts of the Terra community to revive the ecosystem, the value of the algorithmic stablecoin, USTC is still unlikely to repeg to $1. The supply of both USTC and LUNC is very huge which may still hover the clouds of uncertainty over the stablecoin. The value of USTC has been drained by more than 96% from its peg and has been following a steep descending trend since the start of 2023. However, the trend may continue until the end of the year, which may include a couple of notable spikes.
