- Terra Classic price has jumped by more than 20% from the lowest level this month.
- The community voted to change the validator commission in the ecosystem.
Terra Classic (LUNC) price has held quite well in the past few days even as the fear and greed index has plunged to the extreme greed zone. The LUNC token jumped to a high of $0.0000066, the highest point since August 30th. It has soared by more than 25% from the lowest level this year, giving it a market cap of over $376 million.
Crypto resilience continues
A sense of fear has spread in the market recently as investors price in a situation where the Federal Reserve continues tightening. In its decision last week, the Fed decided to leave interest rates unchanged between 5.25% and 5.50%.
The closely watched dot plot pointed to another 0.25% rate hike later this year. If this happens, the Fed will push rates to between 5.50% and 5.75%, the highest point in decades. That rate hike will push mortgage rates to 8%.
Rising rates are making cash more attractive. For example, short-term government bonds are yielding over 5% while the 10- and 30-yields have jumped to the highest level in more than a decade.
There are other riks in the market. UAW workers have continued their strike, the Panama Canal is drying up leading to a major traffic jam, while inflation is a thorn in the flesh. The most recent data showed that the headline consumer inflation in the US jumped to 3.7% in August.
All these factors have contributed to the sense of fear in the market. The Nasdaq 100 index has plunged by more than 8% from its highest level this year. Similarly, the S&P 500 and Dow Jones indices have retreated.
Therefore, it is quite surprising that Terra Classic price has risen by 25% in the past few days. Besides, Terra’s ecosystem crashed in 2022 when its stablecoin de-pegged. A likely reason for this price action is the decision by the community to reset the validator commission through a soft fork. Recently, the community also passed a vote to raise the minimum deposiyt to 5 million LUNC to prevent spam proposals
Terra Luna (LUNC) price forecast
The daily chart shows that the LUNC price bottomed at $0.0000511 this month. Now, it has bounced back albeit in a low-volume environment. Along the way, it has moved slightly above the 25-period and 50-period moving averages while the Relative Strength Index (RSI) has jumped above the neutral point.
Therefore, the outlook for the LUNC token is mildly bullish, with the next key level to watch being at $0.000079, the highest point on August 15th.
