Terra Classic [LUNC] is one of the most interesting cryptocurrencies that have been on our watchlist especially in the first half of September. Since then, as expected, it has undergone a correction, but there are still opportunities around this cryptocurrency.
About a week ago, the LUNC Relative Strength Index (RSI) showed some weakness in the form of lower highs as the price soared. Thus, giving way to short opportunities. That was about a week ago when the price was at the $0.00035 price level but bounced higher before finally giving way to the bears.
LUNC fell to $0.00024 on September 15th, which represents a 59% retreat from the previous rally. Down 30% from the price level at which we spotted the short opportunity. The current level of the cryptocurrency has previously shown some resistance and may act as the next buy zone as demand recovers.
Ready to shift to a higher gear
The previous rally was sparked by the implementation of LUNC’s 1.2% tax burn. The next rally may require an equally significant development, and one may already be in the works. This is courtesy of a new proposal that seeks to reconnect with the Inter Blockchain Communication (IBC) protocol.
— Jane Akp (@akpomuvie) September 15, 2022
Max Callisto, the author of the proposal, had this to say about the benefits of reconnecting Terra Classic to the IBC protocol,
“By activating IBC, USTC & LUNC off the Terra Classic chain they will be able to find their way back into the Terra Classic, thus bringing liquidity to the chain for other uses.”
The development would facilitate an influx of greater demand and utility for both Terra Classic and the LUNC cryptocurrency. It would also support a healthy recovery after the recent renewal.
LUNC is already showing signs of a bearish slowdown after retesting the 50% RSI level. The Money Flow Index (MFI) also suggested that LUNC flows have turned in favor of the bulls.
The cryptocurrency has been trading along a descending resistance line for the past few days. Sufficient buying volumes will allow LUNC to break through resistance.
Additionally, LUNC volume fell below $1 billion after previously peaking above $4 billion. However, the volume of the metric registered a slight increase in the last 24 hours, accompanied by an upward movement in the price.
LUNC development activity also took a hit in recent days as prices fell. A return of activity specifically related to IBC would be a healthy signal to support a change in sentiment.