Will the Terra Classic Price Crash As The Shuttle Bridge Shuts?

As a researcher with a background in cryptocurrency and a keen eye for market trends, I have to admit that the Terra Classic price action following the Shuttle Bridge closure caught my attention. While it’s always intriguing to see how the market reacts to significant events like this, my personal experience has taught me not to get too carried away by short-term price fluctuations.


On Tuesday, November 5th, the price of Terra Classic made a comeback, peaking at an intraday high of $0.000086. This resurgence in LUNC‘s value occurred following Terra’s announcement that they had permanently sealed the Shuttle Bridge and incinerated the remaining tokens.

Terra Classic Price Reacts to Shuttle Bridge Closure

In an X post, Terra announced that it had permanently closed the Shuttle Bridge interface. This closure led to the burning of the remaining LUNC and USTC tokens in the bridge. A token burn happens when tokens are moved to a discrete address that cannot be accessed. 

A few months following the launch of the bridge by the developers, I found myself facilitated in redeeming my wrapped tokens from Terra Classic. This bridge served as a convenient means for me, along with other users, to transfer my LUNC and USTC tokens back to Ethereum, BNB Chain, and Harmony networks.

Will the Terra Classic Price Crash As The Shuttle Bridge Shuts?

The initial unveiling of the Shuttle Bridge took place during Terraform’s reorganization under Chapter 11 bankruptcy, approximately a few years following its structural failure. As part of their agreement with the Securities and Exchange Commission, Terraform Labs was required to destroy any remaining tokens in their possession.

Terra Luna Classic Price Is At Risk

Earlier this year, the price of LUNC reached a double peak approximately at $0.00025, and since then, it has fallen by 65% from its March high. The support level for this pattern, which can be seen as an explanation for the decline, was around $0.000087, where it traded on November 5th.

As an analyst, I’ve observed that the price of Terra Luna Classic continues to hover below the 78.6% Fibonacci Retracement level, which serves as a significant resistance point for me. More importantly, it persists in staying beneath both the 50-day Weighted Moving Average and the Ichimoku cloud, suggesting a bearish trend that I’m closely monitoring.

“The LUNC token has developed two pessimistic chart patterns – a rising wedge. This structure is characterized by successively higher lows and higher highs that are converging. Typically, in most market conditions, this pattern tends to result in a price drop, particularly as the two trendlines approach each other.

The chart for Terra Luna Classic shows a bearish pennant formation, which is characterized by a tall straight segment followed by a triangle shape.

Consequently, when you see a double-top pattern, rising wedge, and bearish pennant in a token’s price chart, it suggests an impending price drop in the short term. If this occurs, the significant level to keep an eye on would be $0.000054, which corresponds to its August lows, representing a decrease of approximately 38% from its current position.

Will the Terra Classic Price Crash As The Shuttle Bridge Shuts?

On the contrary, if the price surpasses the significant resistance level at $0.00011, which was its peak in September, it would contradict the bearish perspective. In this case, it could advance towards the next critical resistance level at $0.00013, a level it reached back in May.

Read More

2024-11-05 20:06