The stability of USTC, the stablecoin of the Terra Classic ecosystem, is currently facing uncertainty despite a recent surge. The volatile nature of the crypto market is causing many to question whether the Terra ecosystem and its stablecoin can maintain their upward momentum.
A popular crypto analyst on the YouTube channel Cilinix Crypto recently expressed cautious optimism about the recent bullish momentum of USTC. The stablecoin has experienced significant growth, climbing from lows of under $0.03 to its current levels, reaching $0.07. However, the analyst warned that emerging weakness in Terra Classic could signal potential trouble for USTC.
According to the analyst, LUNC is currently experiencing a bearish trend, leading him to believe that its price will drop soon. He suggests that due to the correlation between the two, USTC may also experience a decline, despite the recent gains both cryptocurrencies have seen. This view aligns with ChatGPT’s uncertainty about USTC reaching $1.
While the analyst acknowledges positive signs in USTC price action, such as rising open interest and funding rates, he also highlights a wide trading range between resistance around $0.063 and support around $0.047. He advises traders to wait for a clear breakout above or below these levels before determining the next major directional move for USTC.
The analyst emphasizes the importance of a breakout above $0.063 as a signal of continued bullish momentum for USTC, whereas a breakdown below $0.047 may indicate a bearish trend in the short term, leading to price consolidation. Despite the uncertainty, the recent addition of USTC trading pairs on Binance suggests a potentially positive future for the stablecoin.
In conclusion, while the future of USTC remains uncertain and dependent on factors such as the performance of LUNC and the stablecoin’s ability to decouple from its counterpart, it is essential for traders and investors to closely monitor key resistance levels to gauge the direction of USTC’s future movements.