The price of Terra Luna Classic (LUNC) has risen to $0.00013313 today, with the coin gaining up to 3% over the past 24 hours following a broad market rally yesterday.
Despite yesterday’s gains, the current price of LUNC accounts for a 6% loss over the past week and a 19% decline over the past 30 days, at a time when major coins (such as B T c And ETH) are within the same time frame.
However, yesterday’s rally underscores the potential for further gains for LUNC, which is already up just over 13,000% relative to its all-time low set in May 2022 at $0.000000999967.
And with plans to relink the collaborative stablecoin USTC to $1 under development, it may only be a matter of time before large amounts of LUNC are burned, causing the altcoin price to rise.
Terra Luna Classic Price Prediction As LUNC Spikes Up 3% – Here’s Where Is LUNC Going Now?
LUNC’s chart reveals some promising indicators, with both its Relative Strength Index (purple) and its 30-day moving average (red) doing some interesting things at the moment.
Namely, its 30-day average has begun a bullish move towards its 200-day (blue), and if the smaller average becomes longer, the coin could be in for a breakout.
Similarly, the RSI for LUNC has jumped to 70 in recent days, having been below 30 last week, indicating overselling.
Although it has declined in the last few hours, it is still hovering around 60, indicating some decent upside.
The key resistance level for LUNC here is $0.000135: if it can make a clean break through this price, it could witness further gains in the coming days.
Given how poorly LUNC has performed over the past week and month, there is an argument to be made that it is currently oversold and undervalued and therefore could see significant upside momentum in the coming weeks.
This skepticism is reinforced by ongoing efforts to liquidate LUNC and drive up its price, with February seeing the acceptance of a proposal to relink LUNC’s sister stablecoin, USTC.
That’s the reason to be bullish for Terra Luna Classic LUNC tokens will need to be burned in mass Since LUNC is used to regulate the price of USTC.
As the proposal’s authors write, this would create “a more efficient system for LUNC and USTC that could cost more than the tax rate.”
If LUNC is to come even remotely close to its former value, more burning is definitely necessary. 48.6 billion Approximately 5.9 trillion of the circulating supply of LUNC has been burned to date.
This is why the proposal is so important, yet a plan to actually put it into practice still needs to be agreed upon, which is why the LUNC price has reacted really high to its acceptance.
Nevertheless, the Terra Luna Classic community continues to work on several other proposals aimed at promoting LUNC.
This includes a proposal to increase the on-chain burn tax from the current 0.5% to 0.8%, which would obviously drive more LUNC out of circulation.
At the same time, Another proposal suggests changing the burn tax split So that 25% (instead of 10%) of what is burned goes towards funding developers.
This will help fund development on the Terra Luna Classic blockchain, making its ecosystem and app more attractive to users and projects.
However, as positive as the intentions of such proposals may be, they have drawn considerable disagreement. Some validators oppose the idea of raising the burn tax rate to 0.8%,
Additionally, it is proposed to remove a developer from the task force responsible for supporting the development of the Terra Luna Classic ecosystem.
All of this sheds light on why LUNC hasn’t recovered as strongly as some holders wanted and also why its community hasn’t really reached a concrete plan to re-establish the USTC.
Still, there is some good news that the burn rate has definitely increased in recent weeks, with Binance starting to burn its own trading fees and revealing that it has achieved a 100 percent increase in trading fees in the three months to the end of February. 8 billion LUNC was destroyed.
Due to this gradual increase in burn, there is a good chance that LUNC could reach $0.00015 in the coming weeks, with $0.0002 being a slightly more distant target.
From there, it has a realistic chance of returning to $0.0004 or $0.0005 by the end of 2023, assuming the market continues its apparent recovery.
The big advantage rests on the Terra Luna Classic community uniting behind a specific plan to re-peg USTC, something that could increase LUNC if it happens.
Terra Luna Classic Competitors
LUNC’s prospects for significant profit appear to be limited until a concerted plan to reconnect the USTC is developed and implemented.
Meanwhile, traders looking for short-term opportunities may want to consider other coins, as several new altcoins and presale tokens are currently showing promising potential.
If you are interested in exploring these options, cryptonews The Industry Talk team has compiled a list of the top 15 cryptocurrencies for 2023, featuring some of the most exciting up-and-coming projects in the crypto space.
The list is updated weekly with new altcoins and ICO projects, so be sure to check back for new entries.
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