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CDS Crypto News Terra Luna Classic Shows Signs of Recovery as Key Bankruptcy Hearing Approaches

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Terra Luna Classic Shows Signs of Recovery as Key Bankruptcy Hearing Approaches

Terra Luna Classic (LUNC) price shows signs of recovery as the community awaits a crucial Chapter 11 bankruptcy hearing. Could a breakout above key resistance levels spark a significant rally?

Zeynep Öztürk19/09/20241 Mins read80

Terra Luna Classic Shows Signs of Recovery as Key Bankruptcy Hearing Approaches

Over the past six weeks, Terra Luna Classic (LUNC) has seen a steady rise in price, sparking optimism within the community about the token’s potential to reclaim its previous yearly highs. Today marks a pivotal moment for the Terra Luna Classic ecosystem as the community eagerly anticipates the Chapter 11 bankruptcy hearing. Additionally, the U.S. Federal Reserve’s recent 0.50% interest rate cut has ignited speculation of an upcoming crypto rally. Could this signal a LUNC price resurgence?

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Could the Bankruptcy Hearing Boost Terra Luna Classic’s Price?

Terraform Labs (TFL), the driving force behind the Terra ecosystem, has confirmed that its Chapter 11 bankruptcy proceedings will commence on September 19. This hearing is a critical step in winding down Terraform Labs Ptw Ltd and Terraform Labs Limited, paving the way for a corporate restructuring. As part of the agreement with the U.S. Securities and Exchange Commission (SEC), TFL has committed to a $4.5 billion compensation payout, initiating its liquidation process.

TFL’s dissolution will be finalized with a significant event: the burning of all LUNC and USTC tokens by October 30, 2024.

In the meantime, the Terra Luna Classic chain has successfully implemented the v.3.1.5 upgrade, which addresses issues with the wasmd, enhances transaction efficiency, and prepares the network for the upcoming Tax2Gas integration.

Currently, the price of LUNC has risen 2.2% in the last 24 hours, reaching $0.00008452. A bullish pattern is beginning to form on the daily chart, and it could potentially lead to a 50% price increase following the hearing.

LUNC Price Outlook: Could a Break Above $0.000095 Lead to $0.00013?

LUNC’s price action has displayed a bullish uptrend since early August, with an ascending trendline offering dynamic support around $0.000080 and stronger support at $0.000075.

However, the key resistance at $0.000095 has proven difficult to surpass, despite multiple tests. This remains the primary obstacle to continued bullish momentum. Should LUNC break through this level, it could target the $0.000120–$0.000135 range in the longer term.