The token from the old Terra network, now known as Terra Classic (LUNC), has recently shown a significant increase in the cryptocurrency market. The price of LUNC is currently at $0.0001207, reflecting an 8.45% increase from the previous day.
Although the appreciation is small compared to the cryptocurrency standard, the rise indicates a strong upward trend and renewed investor confidence. Another factor of confidence is that Terra Classic is close to finalizing an agreement with the United States Securities and Exchange Commission (SEC) regarding its bankruptcy two years ago.
If this agreement materializes, the network should get rid of the fraud accusations filed by the SEC. Therefore, the arrangement could help boost the price of LUNC back to levels that could reach $1.00.
LUNC's Agreement with the SEC Draws Attention
This week, the SEC, Terraform Labs, and Do Kwon signed a provisional fine payment agreement. The agreement comes after a jury found Kwon and his company guilty of deceiving investors and causing $40 billion in damages.
The agreement with the SEC has sparked significant interest in Terra Classic ecosystem tokens. According to Coinglass data, open futures positions for LUNC and 1000LUNC increased by 15% in the last 24 hours.
This increase includes a 20% growth in open positions on Binance, indicating substantial buying activity by derivatives traders. When futures grow, the trend is for the asset's price to appreciate as well.
LUNC's market value is $699.65 million and it has risen by 8% in the last 24 hours. Its 24-hour trading volume increased by 273.87%, reaching $128.13 million. Just like in futures, a strong rise in volumes can help LUNC reach even higher values.
Last week, LUNC's price appreciated by 8% driven by growing market optimism and renewed investor interest. Additionally, last month, the token experienced a steady increase of 15%, trading in the range of $0.0001 to $0.00012, reflecting positive market sentiment.
Indicators Point to Strong Uptrend
As bullish sentiment gains momentum, LUNC could surpass the $0.00013 mark, confirming the upward trend. This positive market change could push the cryptocurrency's price to break the resistance at $0.0002, targeting $0.0005 in the next bullish cycle.
However, if pessimism sets in, LUNC could retreat to the support level of $0.00012. A prolonged negative trend could cause further drops to $0.00011, increasing the likelihood of selling pressure.
The Moving Average Convergence Divergence (MACD) indicator shows a positive trend as the MACD line (blue) crosses above the signal line (orange), which typically signals bullish momentum.
This crossover is supported by the increasing histogram bars and the Relative Strength Index (RSI), which is currently at 61, suggesting that LUNC is moving toward overbought territory.
Finally, the Awesome Oscillator (AO) is currently at 0.00000850, suggesting slight bullish momentum. The Chaikin Money Flow (CMF) is at 0.01, indicating a marginal inflow of capital into the asset, which could suggest a potential upward trend if this inflow continues.
