The Terra Luna Classic price has dropped by 3.5% in the past 24 hours as part of a marketwide fall caused by speculation regarding the SEC acting against Paxos and the BUSD stablecoin. At $0.00016228, LUNC is also down by 10% in a week and by 8.5% in the last 30 days, with the altcoin seeing its market cap fall below $1 billion over the weekend.
This decline also comes as LUNC’s 24-hour trading volume drops to around $60 million, substantially below the $500 million level it saw at the start of the month when its price rose to $0.0002057. This decrease in liquidity exposes LUNC to a greater risk of further sudden drops, although its longer-term picture looks more promising due to ongoing work on re-pegging USTC.
Terra Luna Classic Price Prediction as LUNC Falls Below $1 Billion Market Cap – Time to Buy the Dip?
LUNC’s indicators reveal that it’s currently experiencing a selloff that may continue for the next few days. Its 30-day moving average (red) recently fell below its 200-day average (blue), while its relative strength index (purple) has dropped to 40 and may continue dropping.
In other words, LUNC’s technicals portend further falls in the short term. This is particularly the case if the altcoin falls below its current support level of $0.00016, which now looks like a real possibility.
Even though the next few days will likely prove difficult for LUNC and the wider cryptocurrency market, fundamentals suggest that LUNC and stablecoin (USTC) will have big price rises in store in the future.
This hope stems mostly from a recent proposal — which has been accepted — to re-peg USTC to $1. This is extremely bullish for LUNC, since even though the details haven’t yet been finalized, a re-peg would necessitate a large-scale burn of LUNC tokens.
As its authors write, the accepted proposal means that the community and its developers will be tasked with “designing a more efficient system for LUNC and USTC that can burn more than the tax rate can.”
This is very encouraging news since, with only 39 billion LUNC burned to date, the burn rate will have to be accelerated massively if the community is to make a significant dent in LUNC’s circulating supply of 6.87 trillion.
Making such a dent remains the community’s primary and overriding goal, of course. For example, last month saw an update to the Terra Luna Classic protocol that provides for whitelists for its on-chain tax burn, meaning that Binance will be able to resume its own in-house burn of LUNC trading fees.
On top of this, last week saw KuCoin announce the resumption of LUNC staking, with the exchange staking close to 47.8 billion LUNC. This will not only take LUNC out of circulation, but will encourage more people to participate in the coin’s ecosystem.
Even with this kind of progress, there remains some discord within the Terra Luna Classic community, with last month bringing a conentious proposal to end payments to developer Jacob Gadikian allegedly for “attacking and slandering validators on the Luna Classic Blockchain.” This proposal remains under vote, and it continues to highlight the fact that participants and developers don’t always see eye-to-eye on how exactly to take Terra Luna Classic and LUNC forwards.
Nonetheless, the overall longer-term picture remains positive for LUNC. It could be expected to recover to $0.0002 in the next couple of months, with a rally $0.0003 possible by the second half of the year.
In terms of really substantial gains, these will depend on the successful realization of the accepted proposal to re-peg USTC. Assuming that this proposal is executed sufficiently well, it could indeed result in LUNC losing one or two of its decimal places, if not more.
Should I Buy LUNC Now?
While LUNC has a promising future, now isn’t the best time to invest in the altcoin, since it does seem to be due further falls in the short-term. Fortunately, there are other high-potential coins in the market that do have better prospects at the moment, and we’ve reviewed them in a list of the top 15 cryptocurrencies for 2023, as analyzed by the CryptoNews Industry Talk team.
This article was originally published by cryptonews.