- Terra Classic (LUNC) and Terra Classic USD (USTC) prices plummet sharply.
- USTC drops 42.97% in 24 hours; LUNC falls 23.51%.
- Binance’s USTC perpetual contract and false purchase rumors influence market volatility.
Following initial surges in value on November 27, Terra Classic
According to the latest data from CoinMarketCap at the time of reporting, LUNC, alongside its counterpart cryptocurrency, experienced a decline of 23.51%. Coin Edition had earlier covered the significant rise of LUNC to its highest value in 90 days, following the Terra team’s efforts to secure the liquidity of both LUNC and USTC.
Classic Pump and Dump
Consequently, USTC experienced a remarkable 192.17% surge in price over seven days. Nonetheless, this price escalation for both digital currencies was influenced by additional factors. Primarily, Binance introduced a USTC perpetual contract to cater to those engaging in leveraged trading.
Before the advancements made by Binance, rumors suggested that Luna Classic Labs, the group responsible for the development of both cryptocurrencies, had made a significant purchase of USTC, spending approximately $500,000 at an average rate of $0.021 per token. The circulation of this information was influential in driving the price of USTC up to $0.071 on November 27.
On the same day, Luna Classic Labs refuted the rumor in a message on X (previously known as Twitter). The team declared in the message that the rumors were false and that the individuals disseminating them were not associated with the project.
Shortly after the announcement by Luna Classic Labs, the positive sentiment surrounding USTC and LUNC plummeted. As a result, it’s possible that USTC will not return to the $1 peg, contrary to some earlier forecasts.
The Rally Halts for USTC, LUNC
The 4-hour chart for LUNC, when compared to the USD, indicated a rapid rate of token sales. This implies that those who spread the rumors were likely aiming to temporarily inflate the token’s value to make profits before selling their holdings.
Should market participants continue selling, LUNC could drop to $0.000068. The Relative Strength Index (RSI) indicated a weakening in purchasing momentum. The Moving Average Convergence Divergence (MACD) corroborated this observation.
At the time of this composition, the MACD had declined below zero. Furthermore, the extended duration EMA had moved above the brief EMA, indicating a downward trend.
If the MACD and RSI indicators persist in declining, the value of LUNC and USTC may maintain a downward trajectory. Currently, participants in the market might have to refrain from engaging in spot or futures transactions involving LUNC due to the token’s significant volatility, which has the potential to result in financial losses for traders.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
