Terra LUNA Classic jumps higher on Wednesday as stablecoins see tailwind pickup with 18% gain in view
Terra LUNA Classic is swinging higher as stablecoins are back in favor.
LUNC sees several tail risks deflating, opening up bullish opportunities.
Bulls could bank an 18% profit on this sudden turnaround.
Terra LUNA (LUNC) price is back in the good graces of investors after a wild ride last week for LUNC and stablecoins in general. The biggest trigger came from the US Dollar, which strengthened firmly in just two trading sessions, placing tremendous pressure on stablecoins. With banking crisis fears abating, yields are coming off their peaks, the US Dollar retreats, and bulls in LUNC can enjoy a firm leg higher on the back of these dynamics.
Terra LUNA Classic is the perfect example of correlations and tailwinds
Terra LUNA Classic price can become “the comeback kid” for this week as LUNC and other stablecoins were a part of altcoins hanging on the ropes after last week. With a flurry of US Dollar strength, stablecoins quickly got battered, and LUNC saw its valuation slide below $0.00012000. A string of tail risks that are deflating is causing some US Dollar weakness and opens up room for LUNC to rally higher.
LUNC has already recovered substantially and is nearing its first real test at $0.000012743. Once that breaks, it will become a near guarantee that $0.00015000 will come onto bulls’ radar. With only the monthly S1 support in the way near $0.00014000, a nice 18% gain could be up for grabs here for bulls as sentiment is turning in their favor.
It would not take much to crack this rally back to where it started, however, as some US Dollar strength or rising US yields would do the trick. Expect a quick reversal in that case back to that same support near $0.00012000. The red descending trend line could act as a circuit breaker again to catch any falling knives.