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LUNA Classic Price Prediction As LUNC Readies For 20% Losses

12/02/2022
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Terra Luna Classic (LUNC) price has been sealed in a downward trend over the past few weeks amid a recoiling crypto market. Consequently, Luna Classic price declined below the $0.00013 level during the second week of November. At its lowest point, LUNC dipped by almost 77% from its September high causing its market cap to plummet to around $970 million to position the token at #43 on CoinMarketCap’s list of biggest cryptocurrencies.

LUNA Classic Burn Rate Soars

Terra’s remnant, Terra Luna Classic, has become a famous crypto over the past few months despite the ecosystem’s collapse in May. Notably, LUNC has done relatively better compared to the version supported by Do Kwon, Terra 2.0. 

Among the reasons behind Luna Classic’s increasing popularity is the current burn rate where the tokens are placed in an inaccessible vault. Binance introduced a new 1.2% burn tax on LUNC tokens, pumping the price of Terra Luna Classic in September by 500%. More than 18.4 billion LUNC coins were burned in November alone, a significant increase from October’s 18.3 billion and September’s 4.2 billion burns.

Another crucial catalyst for Terra Luna Classic is the increase in the number of addresses, rising to over 11,851 in November. This was higher compared to the 11,615 recorded in late October 2022. The upscale was significant given that the crypto market was in turmoil following the collapse of the crypto exchange FTX and its corporate sibling Alameda Research.

LUNC Set To Plunge As FTX Contagion Continues

In light of the recent FTX saga, the entire crypto market has suffered, leading to a plummeting LUNC price in the process. As shown on the daily chart (below), LUNC price has been on a downward trajectory recording lower lows and lower highs during mid-October and throughout November.

The daily chart indicates a sizeable crash for LUNC price in November, before pulling back and forming a descending parallel pattern. In technical price analysis, this pattern is formed when an asset’s price records a series of lower highs and lower lows over an extended period of time – usually more than two weeks. It is usually considered a significantly bearish technical formation over the longer term, showing that prices are in decline.

LUNC price has dropped by almost 10% over the last 14 days, with all signs pointing to a continued downtrend despite the ongoing LUNC token burning. At the time of writing, LUNC is trading at $0.00016307 on CoinGecko, up by 0.4% over the last 24 hours but down by over 32% in the last 30 days.

In the last 24 hours, LUNC has recorded trading volumes of over $66 million, which is lower compared to daily trades in the past month, such as November 17 when it recorded up to $159 million in intraday trading volume with signs of recovering from losses around FTX collapse.

 LUNC/USD Daily Chart

LUNC Price
TradingView Chart: LUNC/USD

Terra Luna Classic price has moved below the 100-day and 50-day moving averages (MA), while the Moving Average Convergence Divergence (MACD) indicator is moving below the neutral line, an indication that the the market still favours the downside.

From the chart, there has not been much volatility in the last month. The relative strength index (RSI) plunged from 56 at the beginning of November, to reach 36 on December 1, 2022. During the past seven days, RSI has moved around 30 at the closing, a clear indication that bears may are still stronger that the bulls

If the bears increase their supply, the LUNC price could continue plunging to break the support at $0.00015, embraced by the middle boundary of the falling channel. A drop further could see Terra’s utilityt token declined toward the $0.00013 level embraced by the lower boundary of the prevailing chart pattern. Such a move would lead to 20.49% losses. 

On the other hand, if the bulls manage to sustain the support at $0.00015, they may push the price past the resistance at $0.000176, where the upper boundary of the descending parallel channel. The next possible target for LUNC price would be $0.000215, a 31% move upward.

The recent LUNC dip is expected, given that not much development is happening within the ecosystem. Earlier in the year, the LUNC community considered reducing the supply to manage the epic drop in price, but this has not worked, as the amount being taken out of supply is low.

In addition, that LUNC price is still plunging suggesting that the entire crypto market continues to suffer the aftermath of the FTX collapse, and adding this to the prolonged bear market, conditions remain blurry for when the whole market will recover.

Consider Buying These Altcoins Today

If you are considering ways to diversify your portfolio amid the current uncertainty in the crypto market, you should probably take a look at projects that are still budding so that you understand their fundamentals before diving in. Dash 2 Trade and IMPT are offering some of the best presales of the year, and have massive potential to deliver notable gains for early investors.

Dash 2 Trade

Dash 2 Trade stands among the most promising cryptocurrency projects to invest in now. It comes in the form of a new crypto analytic platform where users can trade with crypto while getting in-depth analytics about that crypto and others in the market.

The native coin of the Dash 2 Trade platform is the D2T token. Users can use the D2T token to subscribe and gain access to the metrics of the platform’s dashboard. The token is currently in the presale stage three, where a single D2T token is going for 0.0513 USDT. It is making desirable steps so far as 87.64% have already been sold.  If you are looking for a crypto that is currently trending, D2T is the right choice and an amazing opportunity for early investors.

As of November 25, the project had reached another milestone, recording up to $7 million in sales.

So far, more than 70,000 traders have already signed up for the Dash 2 Trade project. The platform intends to establish a dashboard with various features and technical indicators. With these infrastructures, traders will be equipped with valuable data about the specific crypto they choose to invest in.

IMPT

Another promising investment is IMPT, a green crypto project, and carbon credits marketplace. IMPT features a large ecosystem of socially responsible firms brought together by their common need to reduce their carbon footprint.

The native token of the project is IMPT, which a user can use in mining non-fungible tokens (NFTs). As of the time of writing, the IMPT token is on Presale 2, making it the ideal time to invest as prices are as low as 1 IMPT for $0.023.

As a blockchain-based carbon credits marketplace, IMPT offers participants an avenue where each carbon credit is minted as NFT and recorded on a blockchain. As such, all elements of fraud or double counting have been eliminated.

Users can engage in several activities, including trading their Carbon Credits, keeping them, or burning them to make up for their carbon emissions.

Read More:

Dash 2 Trade – High Potential Presale

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Source: https://insidebitcoins.com/news/luna-classic-price-prediction-as-lunc-readies-for-20-losses