- Terra Luna Classic (LUNC) sees a dramatic 35% price surge ahead of a major v2.1.0 parity upgrade.
- Binance’s announcement to delist the USDⓈ-M 1000LUNCBUSD Perpetual Contract and increased trading volumes are key drivers behind the price rally.
The price of Terra Luna Classic (LUNC) soared by a significant 35%, driven by an extraordinary surge in trading volume. The pronounced rally is attributed to Binance’s announcement to delist the USDⓈ-M 1000LUNCBUSD Perpetual Contract and update leverages and margins associated with the perpetual contract. As a consequence, users have been prompted to liquidate their open positions and shorts before the June 8 deadline.
Simultaneously, the Joint L1 Task Force developer group has officially unveiled the v2.1.0 upgrade proposal. This proposal aims to elevate the Terra Classic blockchain to be on par with Terra 2.0 and other Cosmos chains, fueling interest among whales and investors, who are enthusiastically buying LUNC.
The imminence of the delisting of the USDⓈ-M 1000LUNCBUSD Perpetual Contract by Binance, the largest crypto exchange globally, has triggered users to liquidate their open positions, which otherwise would be automatically settled by the exchange, risking potential liquidations. In light of Binance’s announcement and the pending v2.1.0 parity upgrade, traders are opting to close their shorts on 1000LUNC and LUNC.
Data from Coinglass reveals that on June 4, $1.03 million in 1000LUNC shorts were liquidated, while only $405k in longs were liquidated. As of June 5, the liquidation of shorts exceeded that of longs, with $180k shorts liquidated thus far. Additionally, $722k in LUNC shorts were liquidated on June 4 compared to $300k in longs.
These liquidations, combined with a market sentiment that is leaning towards long on LUNC, contribute to the upward price movement.
After Binance burned 1.04 billion LUNC tokens on June 1, the price of LUNC rebounded from its support levels. It has broken free from the 3-month descending channel and achieved a triangle breakout, reinvigorating bullish price movement for Terra Classic ahead of the parity upgrade. However, there has been some pullback in the LUNC price due to profit booking.
LUNC price has experierenced a 35% leap in the past 48 hours and is currently trading at $0.00011. The 24-hour low and high stand at $0.0000890 and $0.000114 respectively. The trading volume has seen a significant rise as whales and investors are accumulating LUNC in anticipation of the CosmWasm parity upgrade scheduled for June 14.