Terra Luna Classic Price Prediction as LUNC Turns Green – Here’s Where LUNC is Headed Now
The Terra Luna Classic price has risen by 1.5% in the past 24 hours, reaching $0.0001648 as the wider market rises by a similar percentage. It has now fallen by 6% in a week and by 8.5% in the last 30 days, as a mixture of the SEC’s actions against Terraform Labs and struggling investor sentiment pulls it down.
Despite recent falls, LUNC is likely to rally again in the near future, with the Terra Luna Classic community coalescing around proposals for boosting the altcoin’s price.
Terra Luna Classic Price Prediction as LUNC Turns Green – Here’s Where LUNC is Headed Now
LUNC’s indicators suggest that it may be due a rebound after a difficult week or so. Its 30-day moving average (red) had dropped below its 200-day (blue), and once it bottoms the coin may indeed mount a recovery.
In addition, LUNC’s relative strength index (purple) has bounced up to 50, after having spent a couple of days sinking to just below 30. As such, this rising momentum may hint at a bigger rally to come in the next day or so.
If LUNC can decisively break through the resistance level of 0.000167 it could see a more sustained increase. Previous recent attempts to rise higher than this price have stalled, so a clear break may signal a move to a more stable level.
In terms of fundamentals, what may help such a break occur is progress on implementing a proposal that was recently passed by Terra Luna Classic validators. In particular, the community has adopted a plan to re-peg LUNC’s sister stablecoin, USTC.
The Signal proposal to re-peg with UST proposed by the LUNC community has passed. Signal proposals do not represent immediate technical consequences. The proposer said that after the voting is completed, he will discuss with the L1 team how to proceed. https://t.co/We9ATUVcpi
— Wu Blockchain (@WuBlockchain) February 3, 2023
Such a re-peg would require a large-scale burn of LUNC tokens. So far, only 39.4 billion LUNC out of a circulating supply of 5.9 trillion has been burned, so a big increase in burning is certainly required if the Terra Luna Classic community is serious about restoring the altcoin to its former levels.
The other big source of LUNC burning is Binance, which will resume its ongoing burn of LUNC trading fees from next month. Again, this is a huge boost for the coin, since the exchange had temporarily halted its burning program, pending a change to how the Terra Luna Classic network handles whitelists for its on-chain burn.
The $LUNC burns are heating up 🔥🔥🔥
— Asobs (@Asobs_YT) February 8, 2023
How much will @binance burn on March 1st? 🤔
Data Here: https://t.co/d2fAAbr6FV pic.twitter.com/9dawAkolk3
However, while plans are emerging to restore the health of Terra Luna Classic (including the recent establishment of a task force), it needs to be pointed out that a certain amount of discord exists within its community.
For example, certain voices have come out in opposition to the aforementioned re-peg proposal. It seems that the main argument against it is that it could be legally risky, given recent SEC actions against Terraform Labs, and against stablecoins such as BUSD.
Also, the SEC labelled UST a security due to its peg with LUNA, and has charged TFL and Do Kwon with f-raud, declaring the algorithmic link between UST and LUNA did not work and was falsely represented as a stablecoin.
— JESUSisLORD (@ForTheCross_CH) February 23, 2023
It’s therefore not a given that the re-peg proposal will actually be implemented in the kind of form that many LUNC holders are expecting. On top of this, other recent events point to tension within the Terra Luna Classic community, including a proposal from late January to cease payments to a developer for criticizing certain validators.
Such conflict comes on top of the SEC’s moves against Terraform Labs and Terra founder Do Kwon. While these may not necessarily impinge directly on Terra Luna Classic (which has now become more decentralized and community-led), it could still drag down LUNC by association.
Today we charged Singapore-based Terraform Labs PTE Ltd and Do Hyeong Kwon with orchestrating a multi-billion-dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities.
— U.S. Securities and Exchange Commission (@SECGov) February 16, 2023
With all this uncertainty in mind, it’s tempting to argue that LUNC is not going to do much until a truly significant re-peg or burn proposal gets put into practice. Until then, the market may see the altcoin seesaw between recovery and further dips.
A sober, realistic target for LUNC at this time would therefore be somewhere around $0.0002, which the coin could reach in the next few weeks, assuming good news. Of course, if a real plan is put into action, it could end up shaving off a few zeros from its price by the end of 2023.
Is Now a Good Time to Buy LUNC?
Because LUNC will likely have to wait for a big rally, some traders may prefer to look toward other high-potential coins that have a higher probability of moving in the short term. To this end, we’ve reviewed them in a list of the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects, so be sure to check back for new entries.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
