As Terraform Labs (TFL) prepares for its highly anticipated Chapter 11 bankruptcy hearing, which begins today, the cryptocurrency market is bracing for a potential plot twist.
Today’s hearing marks a turning point for Terra Classic (LUNC): as part of the winding down process, TFL announced plans to burn all remaining tokens, including LUNC and USTC, by October 30, 2024.
LUNC has seen a steady upward trend over the past month, rising 8.99% amid expectations of an upcoming token burn and broader market recovery.
Even more impressive is the growth of 48.23% over the past year, which is an amazing achievement considering the sense of crisis that often surrounds the Terran ecosystem.
As LUNC approaches this crucial point, all eyes are on the price level. Right now, the token is hovering around the key support level at $0.000085.
On the other hand, the resistance level is at $0.00009. If the bullish momentum continues, especially with today’s hearings and promises of a massive token burn on the horizon, we could see LUNC break through this resistance level. If this happens, a new wave of FOMO (fear of missing out) could cause prices to skyrocket.
Broader Crypto Market Factors
Adding fuel to the fire, the broader market has become a tailwind for LUNC.
The US Federal Reserve’s recent decision to cut interest rates by 0.50% has created a more favorable environment for risk assets such as cryptocurrencies.
As expected, the Fed acquiesced to markets and cut interest rates by 50 basis points. This round of rate cuts will not only prevent a cooling economy from entering a #recession, but it will also increase inflation, making the recession even worse. Buy #gold now.
— Peter Schiff (@PeterSchiff) September 18, 2024
As investors seek higher returns in a world of lower interest rates, LUNC and other altcoins have benefited from renewed optimism in the market.
Behind the scenes, Terra Classic has made technical advances. The recent update to version 3.1.5 has improved transaction efficiency and paved the way for the upcoming introduction of Tax2Gas. These improvements have bolstered the project’s credibility, signaling that Terra Classic continues to evolve despite past problems.
With faster transactions and more efficient gas fees on the horizon, the Terra Classic network is becoming increasingly attractive to both users and developers.
Overall, today’s bankruptcy hearing could be a turning point for LUNC as the planned token burn and technical upgrades will make the token potentially profitable. While risks remain, the stage is set for what could be a turning point in Terra Classic’s journey.
Disclaimer: The contents of this site should not be construed as investment advice. Investing is speculative in nature. When investing, your capital is at risk.
