Terra Classic (LUNC), the original chain of the collapsed Terra (LUNA) ecosystem, continues on its upward trajectory despite the latest crypto market panic triggered by two consecutive lawsuits by the US Securities and Exchange Commission (SEC) against leading crypto exchanges Binance and Coinbase, respectively.
After witnessing a sharp price dip amid the broader market slump, LUNC staged a strong rebound, rising more than 11% in the past 24 hours. Over that period, the cryptocurrency experienced a volatile trading range from $0.00008556 to $0.0001032.
At the time of writing on Wednesday, June 7, the price of Terra Classic stood at $0.00009782, adding around $57 million to its market cap during the 24-hour period.
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After conducting a technical analysis (TA) of LUNC’s price, Finbold identified a support level at $0.00009, acting as a price point where buying interest is expected to be strong and possible downward movements may be limited. On the other hand, $0.00011 represents the resistance zone, indicating an area where selling pressure may intensify, potentially limiting upward movements.
Why is LUNC rising?
Over the past week, Terra Classic soared roughly 16%, with some of its gains coming before the SEC-induced market hysteria.
More specifically, the cryptocurrency attracted considerable buying pressure after the reports of the v2.1.0 upgrade proposal – the third significant upgrade to its blockchain, confirmed for June 14.
Notably, the proposal seeks to align Terra Classic with other blockchains, such as Terra 2.0 and other Cosmos chains, which would ultimately allow its developers to regain the ability to utilize the original Terra chain as a viable option.
In addition, the upgrade is also set to bring a myriad of new features, such as security updates aimed at enhancing the network’s reliability and the WasmVM update, which is meant to introduce the multichain capability and expand the possibilities for Terra Classic.
Another factor that contributed to LUNC’s latest price surge is a separate proposal dubbed #11549 by Cristopher Harris, a popular Terra Classic network validator.
The proposal aims to ensure off-chain LUNC burn, which could eliminate millions of coins from circulation. The voting process for the proposal is scheduled to take place in the next seven days in a bid to allow more community members to participate in the decision.
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