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Highlights
- Both Terra (LUNA) and Terra Classic (LUNC) have witnessed gains of over 2% and 10.6% in the last 24 hours, respectively, according to CoinGecko.
- According to CoinMarketCap, the number of holders of the Terra Classic increased to 10,289 from 9,958 in just 10 days.
Terraform Labs CEO Do Kwon may have had a troubled 24 hours with the United States Court of Appeals for the Second Circuit rejecting his application on the dispute of a subpoena by the Securities and Exchange Commission (SEC), but he had something to cherish about. Terra tokens are witnessing a good run on the market on 10 June despite the development.
In the last 24 hours, Terra (LUNA) and Terra Classic (LUNC) have witnessed gains of over 2% and 10.6%, respectively, according to CoinGecko. This is particularly critical for the Terra ecosystem, which has been on a losing trend for the past week. In fact, LUNA and LUNC tokens shed over 50% in the past week or so as the conversations around the Terra ecosystem collapse hogged the limelight.
Related read: What to expect from the Terra Luna Classic (LUNC) airdrop?
On 10 June, LUNA was trading at US$2.97 with a trading volume of US$59,87,61,905. LUNC was trading at US$0.000074 at 10:15 AM (GMT+1) with a trading volume of US$44,18,28,311, according to CoinMarketCap.
Terra’s rise and fall is crucial at this stage as many market participants seem to be backing the protocol in the hope that it could pull itself back into a profitable position in the coming weeks.
Reason behind the rally
The rally seems to be on the back of the news of the Terra Classic token burn proposal. Experts and investors are hoping that this would be significant to pump up the prices. The governance voted on Terra’s proposal to burn close to 1.388 billion UST stablecoins, reducing the UST’s supply by roughly 11% of its total supply.
Both the developments have generated curiosity around the token in the past 24 hours. With the Do Kwon’s and token burn announcement, many believe that the price of the token may rise in the coming days. There the token has been volatile more than ever in the last few days. If one were to look at the chart, it would suggest that the Bollinger bands are considerably more comprehensive, offering heightened volatility.
Related read: Will Terra 2.0 bring the investors back onto its platform?
The losses in the 45 days are still significant enough considering that investors seem to be caught in the sell-off phase, bringing the volume down for the token. Hence, the green bars may have to wait for some more time before they can rise above.
Image credit: Trading view
The MACD shows a similar perspective with the blue line trying to inch its way up the signal line. As the market is still gripped by bearish trends, the market participants will have to wait. The RSI on 10 June stood at 22.03 at 10:15 AM (GMT+1), still in the oversold position, which is why not many buyers are moving into the market.
High increase in Terra Classic
All is not doom for the Terra protocol. In fact, ever since the LUNA 2.0 launch, it has garnered significant attention within the crypto community. According to CoinMarketCap, the number of holders of the Terra Classic increased to 10,289 as of 10 June from 9,958 on 1 June.
Even though this is a minor increase, the recent string of events has affected both the Terra tokens. It will be interesting to see how the tokens perform in the coming days. That would tempt many investors, but one should remember crypto markets can be fickle, and their prices can change at any given time.
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