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The Terra Luna Classic price has dropped 12% in the last 24 hours, to $0.00012029, as the news of Silvergate Bank’s liquidation shocks the cryptocurrency market.
The current price of LUNC indicates that it has fallen by 28% in the last week and 35% in the last 30 days, with the currency really down by 16% since the beginning of 2023.
In this environment, LUNC’s 24-hour trading volume has grown to $100 million, however given the direction of its price, the majority of this activity is expected to be driven by sellers rather than buyers.
But, with the Terra Luna Classic community working on methods to increase the LUNC price and burning continuing apace, it may only be a matter of time until the token makes a reappearance.
Like with other currencies right now, LUNC’s signs indicate that it is nearing a bottom.
Its relative strength index (purple) has decreased to 20, indicating that it is oversold and should correct upwards.
Similarly, LUNC’s 30-day moving average (red) has gone significantly below its 200-day moving average (blue), while its real price has plummeted below both.
Again, after the dust has cleared on this specific market-wide selloff, LUNC should see a recovery surge.
Apart from its technicals, there are other grounds to believe that the currency will have significant rallies later this year.
For example, a proposal to re-peg LUNC’s sibling stablecoin, USTC, was approved last month.
Given the interconnectedness of the two currencies, this is extremely bullish for LUNC because it would force a large-scale burn of LUNC tokens.
Yet a large-scale LUNC burn is required, since just 39.6 billion LUNC have been burned to date, out of a circulating supply of 5.9 trillion.
As a result, the Terra Luna Classic community must unite around a concrete and practical plan for executing the now-accepted idea.
Sadly, infighting within this community may cause the advent of a solid strategy to be delayed, with a heated request to expel a developer from Terra Luna Classic’s L1 Task Force making the rounds in recent days (which is responsible for developing and supporting the network).
This follows a similar suggestion from January to discontinue paying another developer, showing that Terra Luna Classic and its community are not in the clear right now.
Yet, as seen by the above tweet, support for the newest polarizing plan is quite minimal, illustrating how the Terra Luna Classic community is mainly unified overall.
True, the Terra Luna Classic blockchain has seen a number of significant changes in recent weeks, including a last-month upgrade that enabled developers to adjust code parameters more effectively.
Meanwhile, Binance has restarted its own burn of LUNC trading fees, with the most recent report indicating that it has burnt over 8 billion LUNC in the two months leading up to the end of February.
Its first likely aim is a return to the $0.0002 level seen at the start of February, and it might potentially reach $0.0004 or $0.0005 by the end of 2023.
Of course, this is dependent on the overall market, but with the Terra Luna Classic community assisting in LUNC’s growth, it has all the elements it requires to rebound when the time comes.
