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The token from the former Terra network, now known as Terra Classic (LUNC), has recently shown a significant increase in the cryptocurrency market. LUNC price is currently at $0.0001207, reflecting an increase of 8.45% from the previous day.

Although the appreciation is small compared to the standard for cryptocurrencies, the increase indicates a strong upward trend and renewed investor confidence. Another confidence factor is that Terra Classic is close to reaching a settlement with the United States Securities and Exchange Commission (SEC) regarding its bankruptcy two years ago.

If this agreement comes to fruition, the network should be free from fraud accusations brought by the SEC. Therefore, the arrangement may have contributed to boosting the price of LUNC back to levels that could reach US$1.00.

This week, the SEC, Terraform Labs and Do Kwon signed a tentative fine payment agreement. The settlement comes after a jury found Kwon and his company guilty of misleading investors and causing $40 billion in losses.

The SEC settlement has sparked significant interest in Terra Classic ecosystem tokens. According to data from Coinglass, futures open interest for LUNC and 1000LUNC increased by 15% in the last 24 hours.

This increase includes 20% growth in open positions on Binance, indicating substantial buying activity by derivatives traders. When futures grow, the tendency is for the asset’s price to also appreciate.

LUNC’s market value is US$699.65 million and has increased by 8% in the last 24 hours. Its 24-hour trading volume increased by 273.87% and reached $128.13 million. And just like futures, a strong increase in volumes could help LUNC reach even higher values.

Last week, LUNC’s price appreciated 8% driven by growing market optimism and renewed investor interest. Furthermore, over the past month, the token has experienced a steady increase of 15%, trading in the range of $0.0001 to $0.00012, reflecting positive market sentiment.

Indicators point to a strong rise

As the bullish sentiment gains momentum, LUNC could surpass the $0.00013 mark, confirming the uptrend. This positive market change could lead the cryptocurrency price to break the resistance at $0.0002, targeting $0.0005 in the next bull cycle.

However, if the bearishness reaches the same, LUNC could retreat towards the $0.00012 support level. A prolonged downtrend could cause further declines to $0.00011, increasing the likelihood of selling pressure.

The Moving Average Convergence Divergence (MACD) indicator shows a positive trend as the MACD line (blue) crosses above the signal line (orange), which typically signals bullish momentum.

LUNC analysis. Source: TradingView.

This crossover is supported by rising histogram bars and the Relative Strength Index (RSI), which is currently at 61, suggesting that LUNC is moving toward overbought territory.

Lastly, the Awesome Oscillator (AO) is currently at 0.00000850, suggesting slight bullish momentum. The Chaikin Money Flow (CMF) is at 0.01, indicating that there is marginal capital inflow into the asset, which may suggest a potential upward trend if this inflow movement continues.

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