- Terra Luna Classic price has made a bullish breakout.
- This rebound could be a false breakout amid a short squeeze.
- USTC, Mirror Protocol (MIR), and Anchor Protocol (ANC) soared.
Terra Luna Classic price made a spectacular comeback on Friday as the USTC stablecoin went parabolic. LUNC jumped to a high of $0.00021, the highest level since November 9 of last year. It has jumped by over 63% from last year’s low.
USTC, Mirror, and Anchor Protocol prices soar
LUNC price is having its best day of the year as demand for the Terra ecosystem jumped. It is unclear why the token jumped although analysts attributed it to the decision by Binance to remove a warning it had on the token. Binance, the biggest crypto exchange in the world, handles most of LUNC’s volume.
Another possible reason why the Terra Luna Classic price has soared is that the number of coins being burned or removed from the ecosystem is increasing. The total number of LUNC burned has soared to over 38.6 billion. On January 1, the number of tokens burned was about 37 million.
Meanwhile, LUNC’s recovery is in line with the performance of other Terra-related tokens. According to Binance, USTC price has soared by over 67% in the past 24 hours. Similarly, Mirror and Anchor Protocol prices have soared by over 20%. Historically, these tokens tend to move in sync because of their familiar background.
However, it is unclear whether Terrra Luna Classic and its associated tokens will continue rising. In the past, these short squeezes, such as those I wrote about here, have ended with another quick reversal. This is likely because these tokens are usually thinly traded.
Terra Luna Classic price
LUNC price made a bullish breakout on Friday as a short-squeeze happened. As it rose, the token managed to move above the important resistance at $0.00019. This was an important level since it was the highest level on January 21 and 14 and December 2. The price is also above the ascending trendline shown in black.
Terra Luna Classic may have formed a false breakout because of the limited volume. It has also moved above the important 50-day moving average. Therefore, it is unclear whether the LUNC price will continue rising during the weekend.
Based on the past price action, there is a likelihood that it will have a pullback. The key support and resistance levels will be at $0.00016 (Jan 30 low) and $0.00027 (November 5).
