Terra Classic (LUNC) has recently caught the attention of investors and traders alike. Following a significant surge to $0.00028, the coin experienced a sharp 26.6% decline in value over two days, settling at approximately $0.000206. This change comes amid overall bullish sentiment in the broader crypto market, suggesting that this dip could be a temporary correction, a common occurrence after substantial rallies.

However, bears in the LUNC market have had the better hand in the previous 24 hours, with prices sliding from a high of $0.000275 to an intra-day low of $0.0002159 before regaining some stability. At press time, the bearish momentum was still in charge, with LUNC trading at $0.0002068, a 13.73% drop from the intraday low.

Investors are now closely watching key support levels for LUNC, particularly at $0.000195 and $0.000167. These figures align with the 38.2% and 50% Fibonacci retracement levels. Holding these levels could indicate a potential rebound and a continuation of the coin’s recovery trend. Conversely, a dip below these points might signal a decrease in buyer confidence.

An exciting aspect of LUNC’s recent journey is its performance relative to Bitcoin (BTC). Over the past three months, LUNC has notably outperformed BTC, especially gaining momentum in late November. This contrast highlights LUNC’s appeal to traders who favor more volatile assets and seek opportunities in market fluctuations.

Terra Luna Classic’s Recent Proposal

Amid these market movements, the Terra Luna Classic community has passed a controversial proposal to decrease the number of validators from 135 to 100. This decision has sparked debate within the community, with concerns about potential centralization and security implications.

The proposal aims to mitigate the risk of bad actors and impersonation by setting higher standards for validators. However, critics argue that this move could compromise the chain’s decentralization principle and negatively impact smaller validators.

The proposal received mixed reactions, with 31.69% voting in favor, 22.49% against, and a significant portion abstaining. The largest validator, Allnodes, chose to abstain, highlighting the community’s divided stance.

LUNC/USD Technical Analysis

With a score of 71.20, the Relative Strength Index (RSI) shifts below its signal line on the 24-hour price chart, indicating that the LUNC market is currently overbought. This pattern shows that further negative potential exists in the short term as traders take profits and the market corrects itself.

Furthermore, the stochastic RSI rating of 70.22 and movement south below its signal line support the likely negative movement in the LUNC market. This shift suggests that purchasing pressure is waning and sellers may regain control, resulting in more price declines.

LUNC/USD 24-hour price chart (Source: TradingView)

In conclusion, Terra Classic’s LUNC faces a crucial test at key support levels amidst a volatile market, while a controversial proposal adds complexity to its future.