It was in May 2022 when the Terra Network, behind the (then) major tokens Terra (LUNA) and TerraUSD (UST), suffered a major crash.
The problem took place as the UST ended up facing a major problem with its algorithm. The problem with the stablecoin was that it was not backed by any collateral, but instead by an algorithm.
Therefore, as the algorithm faced the problem, it was the end for the stablecoin. The stablecoin was de-pegged, which meant that it ended up losing the 1:1 peg that it had with the USD.
With the demise of the UST, the other cryptocurrency (then) Terra LUNA ended up facing the same situation. Its price ended up facing a major crash as the investors sold LUNA to save their investments.
Still, the damage had been done and millions of investors ended up losing billions in investments.
Similarly, multiple cryptocurrency lending and custody firms ended up filing for bankruptcy in the wake of the Terra crash.
After the crash, the Terra Network announced that they will be launching new tokens for TerraUSD and Terra Luna.
With the launch of the new tokens, the old tokens were changed to TerraUSD Classic (USTC) and Terra Luna Classic (LUNC).
Performance of LUNC
While the USTC has ended up losing all of its worth, LUNC has still managed to survive. Compared to the new LUNA token, LUNC is demonstrating a stronger or simply speaking, better performance.
Although LUNC is doing better than the current LUNA token, still, it is currently facing a downtrend. The token is currently hovering in the bearish zone but the rest of the crypto industry is also in the same boat.
The data shows that the trading price of LUNC experienced a 1.25% dip in the past 24 hours, bringing its trading value down to $0.0001630.
Prior to the 1.25% and a few dips in the past few days, the price of LUNC was over the 21-DMA, which was $0.0001670.
However, due to the recent downtrends, the price of LUNC has continued to decline. So far, the price of LUNC has fallen to a low of $0.0001630, which means that it has been moving further south from $0.0001670.
Pre- and Post-FTX Crash Situation of LUNC
Prior to November, the trading price of LUNC had been moving higher with a great contribution from Binance. The exchange had been burning LUNC in order to increase its demand in the market.
However, the FTX crash in early November ended up bringing back bad memories for the investors. The fear caused the investors to back out from their investments in LUNC.
Once again, LUNC had become a villain for the investors and they started to despise the digital asset. As a result, the trading price of LUNC went all the way down to $0.0001350.
Despite the strong performance prior to the FTX crash, investors are still finding it hard to trust the likes of LUNC.
As more than a month has passed since the FTX collapse took place, the investors have started to forget about the incidents. They are now coming back to LUNC but they are not much optimistic about it.
Future Price Prediction of LUNC
Based on the history and recent performance of the asset, it is quite clear that the analysts won’t be much optimistic about its price in 2023.
For a cryptocurrency such as Bitcoin and Ether, it is not difficult to get closer to their resistance levels in a matter of weeks. This is because their history is not as tainted as the likes of LUNC.
This is the reason why LUNC has not been able to even come closer to its resistance level of $0.00059, a level hit in early September.
With the tightening scrutiny around the crypto industry on a worldwide scale, it can’t be said if LUNC has much luck on its side.
Therefore, the current effort for the bulls would be to keep LUNC hovering around its current trading price. They have to continue with the same effort in the earlier part of 2023.
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