USTC, the new version of UST, the prominent stablecoin of the Terra crisis, has been on the rise as a result of the developments.
Known as the chief architect of the Terra crisis in the past months, UST created the image of USTC with the post-depeg structuring. The company, which wants Stablacoin to become a peg again, has made various developments. Tobias Andersen’s idea left its mark on USTC developments, which investors were eagerly waiting for. The news effect put the popular stablecoin on the rise.
Why Is USTC Rising?
Tobias Andersen, the core developer of the Terra Classic team, proposed a peg for USTC. While the proposal was quickly accepted by the community, its reflection on the price was not delayed. USTC rallied from the $0.030 levels to the $0.045 levels.
Andersen claimed that he can turn the stablecoin, which is on the busy agenda of the community, to peg. In his proposal, another method was added to methods such as burning transaction taxes and burning staking reward interest. The method, specified as split pools, will follow the path of Quantitative Compaction. Increasing network activity will guide the method, which considers dividing staking pools and issuing different swaps for USTC. According to the proposal, new tokens will appear and these will support USTC.
The approval of the proposal by the community brought with it the instant upward movement. Also, Classy Crypto, one of the biggest influencers in the community, called it the best re-peg suggestion.
USTC Chart, Will the Uptrend Continue?
The intense interest of the crypto community and Terra victims may continue to fuel the USTC rise. If Andersen’s proposal goes into effect, it will be a serious step towards becoming a peg.
USTC managed to break the resistance levels with the effect of buying pressure. Expectations that the popular stablecoin could return to the $1 level again drew the bulls to the market. The stablecoin, which put an end to its bad course and falling trend, retreated from the 0.04551 resistance. The project, which could not meet the sales accumulated at this resistance, experienced an instantaneous pullback of more than 10 percent.
For the popular stablecoin to rise, it must strongly surpass the $0.04551 resistance. With the breaking of this resistance level, one of the strong resistances that comes across is around $0.0526.
If the bulls are exhausted and bearish, it will need to gain strength from the support near $0.0372. As a result, $ 0.035 stands out as the psychological support level.
Although the charts are bullish in terms of direction, we should not forget the importance of the news effect in such coins. If the recommendation starts to be implemented, the uptrend may continue, but if it is not accepted, there may be a strong drop in price.
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