The Terra Luna Classic price has crashed to an important level and hasn’t dropped below that level since 2022. The LUNC token was trading at $0.000060 on Tuesday morning as traders focused on an ongoing vote to reclassify TerraClassicUSD (USTC).
Terra Luna Classic Community Votes to Reclassify USTC
The LUNC community is voting to reclassify USTC from a stablecoin into a Universal Standard Token or a meme coin.
According to the proposal, the vote recognizes that USTC has not traded as a stablecoin since 2022. Instead, it trades as a normal coin, rising and falling depending on market conditions.
The USTC price peaked at $0.07797 in 2024 and has now crashed to $0.015. As such, the proposer argues that reclassifying it as a normal coin will have more advantages than hoping that it will regain its peg. To hit $1, it needs to surge by roughly 7445% from the current level.
The argument is that maintaining its classification as UTC or a meme coin will reflect reality, bypass regulatory restrictions, and preserve exchange listings.
The proposer also argues that if USTC is delisted from exchanges like Binance, Terra Luna Classic would lose a major income source from Oracle pool distributions. Rebranding it as a meme coin would ensure that Binance and other exchanges maintain their listings.
READ MORE: LUNC Price Prediction: Here’s Why Terra Classic May Surge 350%
Meanwhile, the Terra Classic community is voting on another proposal to create a sub-DAO initiative. The sub-DAO will be tasked with organizing and decentralizing key network activity. This vote has attracted mixed opinions, with one validator calling it the second-worst proposal in the network.
LUNC Price Prediction
The weekly chart shows that the LUNC price has bottomed out at the support level of $0.00005245, a threshold it has not fallen below several times since its creation in 2022. It has formed a quadruple bottom pattern, a popular bullish sign.
There are signs that the LUNC price is in the accumulation phase of the Wyckoff Theory. This phase is usually followed by the markup phase, characterized by higher demand than supply.
The LUNC price has also formed a falling wedge pattern on the daily chart. Therefore, the token will likely bounce back and retest the key resistance at $0.0001770, about 170% above the current level.
Another potential catalyst for the LUNC price is the soaring burn rate, which recently crossed the 406 billion level. Over 256 million LUNC tokens have been incinerated in the last seven days.
The other potential catalyst for Terra Luna Classic is the potential US recession that may lead to a more dovish Federal Reserve.
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