Terra Classic (LUNC) Rallies After Key Governance Proposal Approval

• LUNC sees a 271% spike in trading volume post-governance approval.
• LUNC price surge to $0.0001263 signals bullish market sentiment.
• Proposal 12104 enhances IBC, aiming for smoother blockchain transactions.

Terra Classic (LUNC) price has been in a bullish rally over the last 24 hours, driven by significant community developments and trading activity. The Terra Luna Classic community recently passed a critical governance proposal that has had a direct impact on the market dynamics of LUNC and its associated tokens.

LUNC/USD 24-hour price chart (source: CoinMarketCap)

At press time, LUNC was trading at $0.0001147, a 2.55% surge from the intra-day low. During the rally, its market capitalization also gained 2.75% to $664,477,770.

Terra Luna Classic Proposal

The Terra Luna Classic community has successfully approved proposal number 12104, “Reactivate Osmosis IBC,” submitted by developer Fragwuerdig, a former member of the core development team. This proposal focuses on enabling inter-Blockchain Communication (IBC) with the Osmosis protocol, aiming to restore the connection as Client ID 07-tendermint-12 on columbus-5 referencing the Osmosis validator set.

The approval of this proposal, which concluded with an 85% positive vote against a 15% “No with a veto,” is expected to facilitate smoother and more efficient transactions across chains. Of the 40 validators, 38 supported the initiative, reflecting strong community and validator endorsement.

This update is crucial for the network’s enhancement. It will improve the functionality of the IBC relay between Terra Luna Classic and Osmosis, moving from 07-tendermint-12 to 07-tendermint-250 to ensure seamless operations.

LUNC Market Reacts Positively to Governance Updates

Following the governance approval, the Terra Classic ecosystem witnessed a substantial increase in trading volumes, which surged by more than 271% to $662,948,969. The LUNC price notably climbed, oscillating between a 24-hour low of $0.0001116 and a high of $0.0001263. Concurrently, USTC also saw a 3% price increase, with bulls managing to maintain prices between an intra-day low and high of $0.02265 and $0.02513.

LUNC/USD price chart (source: X)

Market analysts predict that LUNC’s price could ascend to $0.00021439. The token’s resilience and recent bullish breakout support this prediction, indicating potential for further significant gains in the near future.

LUNC/USD Technical Analysis

On the LUNCUSD 4-hour price chart, the Bollinger bands are widening, reflecting the increasing market volatility. However, with the price action retracing from a recent breakout above the upper band at $0.0001220, a correction could be imminent. The bands’ upward motion suggests bullish momentum is still strong, and the pullback may be a consolidation phase before a breakout.

LUNC/USD 4-hour price chart (source: TradingView)

Adding to the pullback projection, the Moving Average Convergence Divergence (MACD) is shifting south, suggesting a waning bullish momentum. If the MACD blue line falls below its signal line and the developing lower bars of the histogram shift into the negative region, a bearish rally may be anticipated.

The Bull-Bear Power (BBP) rating of 0.000001089 too suggests that the bullish momentum is ending since traders are taking profit from the recent gains.