Over the past month, the price of Terra Luna Classic’s native cryptocurrency, LUNC, has witnessed a significant decline of 28%, largely due to a descending parallel channel that has formed amidst gloomy market sentiments. As a result, LUNC has slipped down to the 134th position on the global crypto charts by market capitalization.
The Dark Shade of Terra Cast on LUNC
Adding to the woes, LUNC’s price has dropped by 10% in the last seven days, while Bitcoin, the leading digital asset, recorded a 3% gain. However, crypto analysts see a ray of hope in Terra Classic’s long-term bullish pennant, which indicates a potential price reversal for LUNC after it lost all of its 300% gains from December.
After the LUNA and UST collapse, TerraformLabs and Do Kwon ignored #LUNC and #USTC and left it to the community; So far, it seems to have been good for the Terra Classic chain.
▪️We believe that the Terra Classic chain will be minimally affected by the decisions made in the USA.… pic.twitter.com/ofV7es9Eik
— Crypto News Portal (@TerraNewsEN) April 8, 2024
LUNC Amazed by Terra vs. SEC Case?
The recent downward spiral in Terra Classic’s price movement is being attributed to the TerraForm Labs vs. the U.S. Securities and Exchange Commission (SEC) case, where Terra chain’s founder, Do Kwon, was found liable for misleading customers. This has had a significant impact on Terra Classic’s USD (UST) stablecoin, which crashed to below two cents in 2022, causing a $40 billion shortfall for crypto investors.
Despite the ongoing Terra vs. SEC case, LUNC’s node validator Naatie Paat believes that the LUNC price may not be affected in the long run, given that they are a fully community-led entity and separate from TerraForm Labs. Terra Classic’s chain comes from the original Terra (LUNA) blockchain, which has been separate from TerraForm Labs since May 2022.
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$LUNC (Terra Classic) remains in a technically bullish state and can be setting up for a MASSIVE CONTINUATION towards the first $0.00058046 target but based on the previous breakout, these levels can be greatly exceeded!
A more than 4.05X could be on the way… https://t.co/oU1gWadL6p pic.twitter.com/scYNNboVnd
— JAVON⚡️MARKS (@JavonTM1) April 4, 2024
Crypto analysts are using technical indicators to determine if Terra Luna Classic’s price could reach $0.00058 based on its previous breakout to $0.000258 on December 5, 2023. However, for this theory to sustain, LUNC must enter a bull cycle around Bitcoin’s halving, which is expected to occur around April 20, 2024.
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The Reason for this Matter
The further price movement of Terra Luna Classic will heavily depend on the developer activity on the Layer-1 chain. To avoid sabotage shorting practices, the LUNC community has voted to impose a KYC procedure for developers building on the Terra Classic chain. Despite dropping out of the TOP 100 by global crypto market cap, Terra Classic’s blockchain has a vast community of members worldwide.