Terra Luna Classic Faces Turbulence

Within the past twenty-four hours, Terra Luna Classic (LUNC) has experienced a retracement in value due to the community’s rejection of an 800 million USTC fire proposal.

Disagreement among validators and members has characterized this decision, which has caused significant repercussions on the cryptocurrency market.

The “Burn of 800m USTC Funds” proposal, designated 11927, was approaching rejection by the Terra Luna Classic community. The initiative aimed to expend a substantial quantity of USTC in the Risk Harbor multisig wallet before the December 27 voting deadline.

This course of action was considered critical after Risk Harbor was informed that the keys had been misplaced, thereby preventing the recovery of funds.

Notwithstanding the pressing nature of the matter, the proposal received a mere 30% of the vote in favor, while 11% expressed opposition and 15% opted to veto it. A notable 44% of the total ballots were cast in abstention.

The division of opinion within the community underscores the intricate nature of decision-making processes on decentralized finance platforms.

As a result, the token price of the Terra Luna Classic has been impacted. LUNC experienced a daily decline of 6.78% and is currently trading at $0.0001455. CoinMarketCap reports that the token fluctuated, with a twenty-four-hour trading range of $0.0001425 to $0.0001571.

During the decline, the 24-hour trading volume of LUNC increased by 11% to $77.14 million, while the market capitalization of LUNC fell by 5.92% to $860.37 million.

Despite the price decline, this increase in trading volume indicates a growing interest and level of activity in LUNC, with investors possibly purchasing additional tokens at reduced prices.

Similarly, the value of USTC experienced a decline of 5%, as it is presently trading at $0.03314. The week was characterized mainly by neutral price movement, indicative of market uncertainty. USTC’s 24-hour trading range spanned from $0.032 to $0.0352.

With a rating of -0.000003747, the Moving Average Convergence Divergence (MACD) on the 4-hour price chart is in the negative region, suggesting that the bearish trajectory for USTC may persist shortly.

Conversely, the lower bars depicted on the MACD histogram indicate a diminishing selling pressure, potentially indicating an imminent stabilization of prices.

An upward shift in the histogram may signify an end to the adverse trend and an escalation in purchasing pressure.

Based on the Relative Strength Index (RSI) reading of 39.17 and the upward trajectory following oversold conditions, a modest increase in LUNC purchasing activity is possible.

Moreover, the increased trading volume at LUNC indicates a heightened level of investor attention. If the RSI rating continues to rise and trading volume remains elevated, this may show a more optimistic sentiment and result in additional price appreciation for LUNC.