- Terra Luna Classic token has jumped by over 26% from the month-to-date low.
- The developers will implement the parity upgrade on Wednesday this week.
- Investors will likely sell the fact after the upgrade jumps.
Terra Luna Classic price jumped sharply on Tuesday as investors cheered the upcoming parity upgrade in the ecosystem. LUNC jumped to a high of $0.00010, the highest level since June 9th of this year. It has jumped by more than 26% from the lowest level this year.
Parity upgrade for LUNC
Terra Luna Classic has done well in the past few days, outperforming major cryptocurrencies like Bitcoin, Ethereum, and Solana. This performance happened as investors cheered the upcoming upgrade in the ecosystem.
The upgrade is being orchestrated by the core developer, who is known as Joint L1 Task Force and is aiming to make the fallen angel to the same footing as other platforms like Cosmos and Terra 2.0. This means that developers will attract more developers in the ecosystem.
In a statement, the developers said that the upgrade will happen on June 14th (Wednesday) when it reaches block height 1325800. Therefore, LUNC price is soaring as investors wait for this upgrade and as the number of staked LUNC jump. Over 63 billion LUNC tokens have been burned. Burning is a process where tokens are removed from circulation.
Historically, cryptocurrencies tend to jump ahead of a major upgrade. For example, Ethereum price soared last year ahead of the London hard fork.
However, caution is warranted because of a market condition known as ‘buy the rumour, sell the news’. This is a situation where people buy an asset ahead of a major activity and then sell it when it happens. After jumping before the hard fork, Ethereum's price retreated to below $1,000 a few months later.
Just three weeks ago, I wrote about KAVA, whose price was jumping ahead of a major upgrade. It the dropped a few days later.
Terra Luna Classic price prediction
The 4H chart shows that the LUNC price has been a bit volatile in the past few days. This is evidenced by the significant jump of the Average True Range (ATR), which is the most popular indicator of volatility.
Terra Luna Classic price has jumped above the important 25-period and 50-period exponential moving averages (EMA). The token is now trading at the key resistance point, which is also the highest point on May 10 of this year.
Therefore, I suspect that the coin will retreat after the parity upgrade on Wednesday. If this happens, the next key level to watch will be at $0.000082, the lowest point on June 1 and May 25th.
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