Binance Boosts Terra’s Currencies USTC, LUNC Amid Market Uncertainty
Recovery for Terra? LUNC and USTC on the Rise
The two main currencies of Terra, USTC and LUNC, have recently been causing a stir on CoinMarketCap, thanks to their bullish price performance.
The Current Situation of Terra
Terra has taken a heavy hit in recent years, particularly since the decoupling of the stablecoin. This led to a catastrophic bear market, the effects of which are still being felt. However, Binance, the world’s largest crypto exchange, recently made an announcement that raises hope for a trend reversal.
Why is Terra Suffering?
To illustrate: TerraUSD lost its value of $1 in May 2022, causing an outcry throughout the crypto market. Not only did the tokens of the Terra ecosystem fall, but top coins such as Bitcoin and Ethereum also took a hit. Since then, the entire Terra ecosystem, including LUNC, has been struggling.
The Outlook for Terra
Things could, however, look different for Terra in the coming months, as Binance has made an important announcement. Binance Futures introduced the USD-M USTC Perpetual Contract with up to 50x leverage on November 27, 2023. This led to most tokens of the Terra ecosystem, such as USTC and LUNC, receiving a bullish swing.
The Performance of Terra Classic and TerraUSD
According to CoinMarketCap, USTC has risen by more than 36% in the last 24 hours. At the time of publication, the value was $0.05032 with a market capitalization of over $451 million.
Terra Classic has also initiated a promising bull rally. LUNC has shown commendable performance in the recent past, as its price has risen by double digits. At the time of writing, the trading price was $0.0001194 with a market capitalization of over $394 million, making it the 71st largest cryptocurrency.
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Outlook
Although the growth of open interest looks promising, there are also signs that LUNC may not be able to sustain its upward trend in the coming weeks. The price of LUNC has touched the upper limit of the Bollinger Bands, causing a trend reversal and pushing the price of LUNC downwards. The Money Flow Index (MFI) has entered an overbought position. In addition, the Relative Strength Index (RSI) has also entered a similar zone. This can exert selling pressure on Terra Classic, which could be concerning for its ongoing bull rally.
Conclusion
The future of Terra is uncertain, but recent developments give cause for hope. Despite some concerning indicators, the main currencies of the Terra ecosystem, USTC and LUNC, have shown remarkable performance. It remains to be seen whether this positive momentum will continue and whether Terra can recover from past setbacks.
Sources: CoinMarketCap, Santiment, Coinglass, TradingView.
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