Luna Classic set to activate Inter Blockchain Communication, LUNC price eyes bullish breakout
- The Luna Classic network is set to reactivate Inter Blockchain Communication, an important milestone for LUNC holders.
- IBC with Cosmos chains is set to increase the utility of Luna Classic (LUNC) tokens for holders.
- Luna Classic price sees a bullish breakout, the 200-day exponential moving average serving as resistance at the $0.000186 level.
Luna Classic, the original token of the original Terra blockchain, is set to re-enable communication and information sharing with Cosmos chains. This is considered a key event in Luna Classic’s development journey as it increases LUNC’s value to holders.
Also read: Luna Classic price: Binance burned 6 billion LUNC, sparking massive rally in the altcoin
Luna Classic is preparing to relaunch Inter Blockchain Communication
Luna Classic (LUNC) has announced that its blockchain will reactivate Inter Blockchain Communication (IBC), a protocol that allows message sharing and trading with other blockchains.
@reXxTerraRebels, a member of an independent Terra Classic development group confirmed that IBC will be reactivated for LUNC. The LUNC community still needs to adopt some additional governance proposals to upgrade clients, according to reXx.
The code for the IBC has gone through preliminary tests and developers are performing additional tests and seeking external reviews. Interestingly, the Luna Classic upgrade is scheduled to happen without downtime.
Developers accelerated the timeline for the reactivation of IBC on the Luna Classic network to overlap with the changes to the Cosmos ecosystem. The Cosmos Network is a decentralized network of independent, scalable and interoperable blockchains. Cosmos chains play a key role in the Terra Classic ecosystem as multiple apps on the network communicate with and transfer assets across LUNC and Cosmos through IBC.
Terra Classic core developer Edward Kim noted in November that the development team deemed it necessary to move up the timeline and launched a proposal to have the IBC channels reopened by December 5.
This is an important milestone that has the potential to stimulate the utility value of Terra Luna Classic (LUNC). Users will be able to transfer value across other Cosmos chains, developers will build and update their projects to accept LUNC and attract the burgeoning Terra Classic community.
Luna Classic will become fully compatible and interoperable with Cosmos, so that projects based on LUNAv2 can be deployed on Terra Classic.
To recover from Terra’s collapse, and rebuild
During the $41 billion collapse of Terra’s sister token LUNA (which later became LUNC) and algorithmic stablecoin UST, developers cut the lines of communication with other blockchains. This measure was taken to protect users from the ripple effects of the ecosystem’s collapse.
The LUNC community patiently waited for the reactivation of IBC and the transfer of assets to other blockchains such as the Cosmos Network. Jacob Gadikian, a senior Cosmos developer informed users in October that the code to reactivate IBC and support the ecosystem was ready.
Luna Classic price seems to be recovering, targeting the $0.000186 level
Terra’s Luna Classic price remained largely unchanged overnight, but as Luna Classic developers plan to reactivate IBC and make LUNC fully interoperable with Cosmos chains, there is renewed enthusiasm in the community.
As shown in the LUNC price chart below, the 200-day exponential moving average (EMA) of $0.000186 is acting as resistance for Luna Classic. A rally in LUNC could push the token’s price back up to retest the $0.000186 level.
LUNC/USDT price chart
Noting LUNC price movements with respect to a volatility indicator, Bollinger Bands, LUNC is moving closer to the lower band. This indicates that LUNC may soon enter the buy zone for traders to accumulate the token before the breakout as it targets the $0.000186 level. A decline below $0.000171 could invalidate the bullish thesis for Luna Classic.
