Terra Classic Community’s Decision and Its Impact on LUNC Token

Terra Classic’s LUNC token experienced a notable price rally, gaining 30% in a week. Despite the community’s rejection of a proposal to create an independent website, the token surged due to positive developments from Terraform Labs (TFL) amid its Chapter 11 bankruptcy proceedings. The Terra Classic community recently voted against a proposal to establish an independent website. This website aimed to enhance community cohesion through design processes and concept workshops. However, the proposal received minimal support: only 4% voted in favor, over 21% voted against, and a significant 63% vetoed it, with 12% abstaining.

LUNC Token Rallies Despite Rejection

Despite rejecting the proposal, the LUNC token saw a surprising rally, increasing by about 5%. This price surge highlights the Terra ecosystem’s resilience and is likely influenced by recent positive updates from TFL. Currently, LUNC has risen 4.65% to $0.00009108, peaking at $0.00009153 in the last 24 hours. It has gained nearly 30% over the past week, indicating heightened market interest.

Similarly, USTC is up approximately 4% to $0.02047, with a 60% surge in one-day trading volume, reflecting significant trading activity. Santiment’s data revealed that the LUNC bull rally boosted its social metrics, with a noticeable rise in social volume showing growing interest. Additionally, Binance information has been aiding in LUNC burns. Despite these positive signs, the weighted sentiment remains negative, indicating ongoing bearish feelings in the market.

Technical Analysis And Sustainability Of LUNC’s Rally

LUNC is testing a key resistance level, which it must surpass to continue its rally. The MACD indicator shows a bullish trend, but the RSI’s slight downtick hints at potential challenges. Additionally, significant LUNC liquidations at $0.000086 suggest a possible price correction, leading to a consolidation phase.

1/ We'd like to inform you about a recent bankruptcy court order in TFL’s chapter 11 case authorizing TFL to do the following: 1) Reopen the Shuttle bridge for the redemption of wrapped assets on Terra Classic; 2) Undelegate & burn the 150M LUNA from the Terra Community Grant ⬇️
— Terra Classic (@terrac_money) July 19, 2024

LUNC’s price rally is linked to recent developments in TFL’s Chapter 11 bankruptcy case. A court order allowed the reopening of the shuttle bridge and authorized a significant burn of 150 million LUNA. These updates have generated renewed interest and optimism within the Terra Classic community. The reopening of the shuttle bridge is particularly significant as it enables the movement of substantial amounts of LUNC and USTC. The bridge contains 275.7 billion LUNC and 178.4 million USTC.

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The community plans to keep the bridge open for one month. If funds are not withdrawn during this period, they will be burned, reducing the circulating supply and potentially increasing the token’s value.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.