Terra Classic (LUNC), the native token of the embattled Terra ecosystem, is experiencing a massive surge in price and a strong bullish trend. This resurgence comes after a considerable period of consolidation following the TerraUSD (UST) de-pegging earlier this year.

Source: Javon Marks

The latest technical analysis indicates a bullish divergence between LUNC’s price and its On-Balance-Volume (OBV) indicator. The OBV gauges positive and negative volume flow, providing a clear picture of trading direction. As per the 3-day chart above, this technical indicator suggests a potential breakout, with some analysts targeting a price increase of over 342% to reach $0.00042986.

“LUNC (Terra Classic) has returned with major strength here after holding a bullish divergence with the OBV, and this may be the start of a much greater run! With a breakout target at $0.00042986, prices can be set for an over 342% climb to reach and break above it, and this could be the early stages of that process.”

LUNC, along with TerraUSD (UST), has suffered a brutal decline since the collapse of the Terra ecosystem. However, a recent lawsuit filed by the U.S. SEC against Consensys may be providing some tailwinds for LUNC.

According to reports, the SEC provided much-needed clarity on the classification of several cryptocurrencies, including LUNC, as securities, which could be seen as a sign of legitimization for the asset class.

Additionally, the Terra Luna Classic community recently voted on a proposal to create an independent community website in the vein of Bitcoin.org. This initiative underscores the community’s commitment to rebuilding trust and fostering long-term growth.

Adding to the positive sentiment are several recent developments that are fueling investor optimism. These include a recent price uptick, a significant token burn with strong community support, and crypto exchange Binance burning 62 billion LUNC tokens.

Furthermore, Terraform Labs, the firm behind the Terra blockchain, has announced August 9th as the deadline for submitting claims in its bankruptcy proceedings.

Looking ahead, the combination of these factors suggests a potential turnaround for LUNC, despite an uncertain future. However, it’s important to remember that cryptocurrency markets are extremely volatile, and past performance may not necessarily be indicative of future results. Investors should always conduct thorough research before making any investment decisions.