LUNC price may retest YTD lows, Terra Luna Classic price prediction
The cryptocurrency Terra Luna Classic (LUNC) is facing a challenging situation.
Last May, the Terra blockchain, which powered the algorithmic stablecoin UST, suffered a catastrophe when UST lost its 1:1 peg to the US dollar. Currently, LUNC is trading around 3% lower on Wednesday in the $0.000084 area.
As LUNC acted as collateral for UST, the market cap of LUNC (formerly LUNA) fell below the supply of UST, causing a bank run and a “death spiral” in LUNC. LUNC holders lost everything as the supply was hyper-inflated by the UST to LUNA mint-burn mechanism, and the Terra ecosystem saw a significant outflow of capital, users, and developers.
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Price Prediction – Terra Luna Classic (LUNC) to Test Yearly Lows?
The drop in LUNC on Wednesday indicates that a test of year-to-date lows in the $0.00008 area is likely.
According to technical analysis, LUNC found strong resistance at its 21DMA, suggesting that the near-term bearish bias remains intact. Moreover, LUNC is on the verge of breaking south of a pennant structure, which could trigger fresh technical selling.
The $0.00008 level is a key long-term resistance zone, and a break below it could lead to a run towards last June’s lows in the $0.000035 area.
This implies that LUNC could experience a further 60% price decline.
The failure of the Terra project and its credibility in May 2022 dealt a fatal blow to LUNC, which represents a long-dead cryptocurrency network.
Luna Classic (LUNC) Alternatives to Consider
Investors should consider diversifying their crypto holdings.
One high-risk-high-reward investment strategy to consider is getting involved in crypto presales. In this strategy, investors buy the tokens of up-start crypto projects to help fund their development. These tokens are typically sold very cheap, and there is a long history of presales delivering huge exponential gains to early investors. Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform. If an investor can identify such projects, the risk/reward of their presale investment is very good.
The team at blockchain.com spends a lot of time combing through presale projects to help investors out. Here is a list of 15 of what the project deems as the best crypto presales of 2023.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of blockchain.com.