Amidst a governance proposal controversy and stagnant trading activity across the broader crypto market, the price of Terra Luna Classic (LUNC) experienced a 4% bounce on Wednesday, demonstrating resilience in the face of uncertainty.

The governance proposal in question, aimed at preventing double network validating, received mixed reactions from the community. Critics of the proposal highlighted concerns that it would hinder some providers of managed node validator services from operating effectively. Additionally, others noted that the proposal lacked actionable measures and could be ignored by node validators.

While some entities expressed support for the governance proposal, they also acknowledged its limitations and called for better-thought-out measures to encourage positive behavior within the ecosystem.

Currently trading around $0.0001060, Terra Luna Classic's price remains influenced by technical factors, with its 21-day moving average acting as a key level of interest. Although LUNC briefly reached highs above $0.00012 earlier in the week, it faced resistance at its 50-day moving average, prompting selling pressure.

The failure to break above the $0.00012 resistance zone indicates a lack of bullish momentum, reflecting the broader trend in the crypto market. Bitcoin, for instance, struggled to surpass its 50-day moving average and retreated to $62,000, contributing to the overall subdued market sentiment.

Several factors contribute to the current market conditions, including Bitcoin's typical post-halving lull, anticipation of potential Fed rate cuts, and concerns about regulatory enforcement against the crypto sector. Ethereum ETF applications facing potential rejection by the SEC further add to the uncertainty surrounding the market.

Despite the challenges, Terra Luna Classic has shown resilience, rebounding from recent lows and snapping a downtrend that had persisted since early March. While the technical outlook has improved, sustained momentum above the $0.00012 resistance level is essential for further upside potential in the LUNC price.

As the crypto market navigates through regulatory uncertainties and technical challenges, investors and stakeholders will closely monitor developments within the Terra Luna Classic ecosystem to gauge future price movements and market sentiment.