The Terra Classic community has taken a step forward towards bringing UST back
LUNC rose, but was overbought and could turn quickly.

The idea that the Terra classic [LUNC] community may have been wrong about LUNA’s painful collapse. Of course, the community had said repeatedly that they were focused on rebuilding. But there has been a proposal from Signal to release the fizzled stablecoin from the Terra [UST] ecosystem.

Read Terra Classics [LUNC] Price prediction 2023-2024

LUNC in the face of a possible UST comeback

On February 3, the proposal was approved at first reading to re-peg the UST to the dollar. However, there was no assurance that the target would eventually be adopted, as it would have to go through several phases.

The development may sound baffling given the stablecoin being played in Terra Luna [LUNA] and a wider crypto market crash in 2022. Recall that investors were excited about LUNA and most even agreed with the label “the future of money”.

But the project founder’s dishonesty and multiple half-truths have led much of the crypto community to abandon LUNC.

Still, the token didn’t seem to be doing too badly. In the past 30 days, it has experienced a 29% price increase, although this was a minute compared to many other cryptocurrencies.

On the daily chart, LUNC was approaching overbought territory, as shown by the Relative Strength Index (RSI) below. Due to the attitude, a price reversal may be imminent.

In a twist of expectations, LUNC, known to exhibit extreme volatility, showed high contraction, as indicated by the Bollinger Bands (BB). However, the price reached the upper band again and again. This condition indicates that LUNC is in an overbought region.

Source: TradingView

LUNC: Swinging on the chain

As for the volume, Sanitation showed that there was a significant peak on 2 February. This drove the metric 473.04 million. Volume measures the number of times assets are traded within a given time frame.

With the LUNC price increasing along with the volume in 24 hours, it meant that there was a lot of LUNC tokens being bought and sold.

Realistic or not, here it is The market cap of LUNC in terms of BTC

Social dominance, which measures an asset’s share of the industry discussion, also followed the same trend. At the time of writing, it was 0.954%, meaning LUNC had recently joined some of the top conversations about cryptocurrencies.

Source: Sentiment

Meanwhile, comments from the LUNC community showed diminished euphoria over the UST development. Either way, the next few months would confirm whether or not there would be a comeback.

This post Assessment of the condition of LUNC after the reconnection of UST has passed the first phase

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