The price of Terra Luna Classic (LUNC) has recently skyrocketed by 35%, bolstered by a massive increase in trading volume. This rally can be attributed to two main factors: the upcoming delisting of the USDⓈ-M 1000LUNCBUSD Perpetual Contract by Binance, and the recent release of the v2.1.0 upgrade proposal for the Terra Classic blockchain.
Binance, the world’s largest crypto exchange, announced that it would delist the perpetual contract and update leverages and margins on June 8th, 09:00 UTC. As a result, users have been moving to close their open positions and shorts before the deadline to avoid potential liquidations. Additionally, investors and whales have been buying LUNC, likely due to the Joint L1 Task Force developer group’s release of the v2.1.0 upgrade proposal. This upgrade aims to bring the Terra Classic blockchain on par with Terra 2.0 and other Cosmos chains.
Traders are closing their shorts on 1000LUNC and LUNC in response to Binance’s announcement and the v2.1.0 parity upgrade. Data from Coinglass reveals that $1.03 million in 1000LUNC shorts were liquidated on June 4, compared to only $405k in longs liquidated. On June 5, short liquidations remained more prevalent than long liquidations, with $180k in shorts liquidated.
Additionally, $722k in LUNC shorts were liquidated on June 4 compared to $300k in longs liquidated. Currently, traders are increasingly going long on LUNC, anticipating an upcoming rally. The positive sentiment surrounding LUNC is driving up its price.
In the wake of Binance’s announcement of burning 1.04 billion LUNC tokens on June 1, the LUNC price rebounded from support. It has since breached the 3-month descending channel and a triangle breakout, revitalizing bullish price movement for Terra Classic ahead of the parity upgrade.
Despite the steep incline in LUNC’s price, it is currently experiencing some pullback due to profit booking. More 1000LUNC and LUNC shorts liquidations in the forthcoming days will potentially contribute to a further increase in LUNC’s price.
At the time of writing, LUNC’s price has jumped 35% within the last 48 hours, with its price now sitting at $0.00011. The 24-hour low and high are $0.0000890 and $0.000114, respectively. Trading volume has also witnessed a substantial increase as investors and whales are purchasing LUNC in anticipation of the CosmWasm parity upgrade scheduled for June 14.
As always, it is essential for crypto enthusiasts to conduct thorough market research before investing in cryptocurrencies, as the views expressed in this article represent personal opinions that are subject to market conditions and changes.