Terra Classic has been the most trending cryptocurrency in the last few weeks. Amidst the controversial nature of Terra Classic, following the plummeting of UST and Terra (LUNA), Terra Classic has been one of the main topics of conversation among crypto traders recently.
The price of LUNC remains bearish as of October of 2022. After the huge failure of the Terra ecosystem, the price has been attempting to recover. During late-august and early September, the price of LUNC increased by almost 600%, indicating that there are plenty of people that still believe in the old blockchain of Terra, given the results of the hard fork.
Nonetheless, after that, the price of LUNC declined by 70%. After the price found support at $0.00018, LUNC had another surge in the price, where it increased by 80% within a day. Then, the price retraced to the 50% Fibonacci level, which then led to another increase. Currently, the price is in consolidation, but the overall sentiment remains bearish, given the current state of the market as well as the general FUD regarding Terra.
Nonetheless, Terra Classic remains the most trending cryptocurrency of the month. That could have major implications for the price of LUNC in the coming days/weeks. Taking into account both fundamental and technical factors, here is what our analysis suggests.
Terra Classic (LUNC) Technical Analysis
In the 4-hour chart, LUNC has been in a downtrend. The price has declined by around 30% in the last few weeks, ever since LUNC faced resistance at $0.00037. Looking at the LUNC/USDT chart, we can see a wedge pattern forming given the lower trendline ascending while the upper trendline descending.
Taking into account that LUNC is trending and that the trading volume has been relatively high, we could see a breakout happen in the price of LUNC in the coming days. Overall, LUNC trending is a good thing for LUNC holders, giving them hope that the trend could reverse in the short run.
LUNC/USDT 4-Hour Chart. Source: TradingView
Indicators
The fear and greed index suggests that there is moderate fear for Terra Classic, preventing it from having major surges in price. However, too much fear often leads to reversals. Hence, even if the price declines in the coming days, buyers can then take advantage of the corrective waves that follow.
The RSI of a 4-hour chart is within the 30-70 range, but it weighs more on the bearish side of things. Since LUNC is not in the oversold region yet, we could see the price continue to decline, other things equal. Nonetheless, this also means that there is plenty of space for growth if LUNC has a sudden bullish breakout.
The MACD line of a 4-hour chart is currently slightly above the signal line, meaning that the short-term momentum is slightly bullish. While it is still below the baseline, this momentum can easily change in the coming days if the price fails to gain support in the protected area.
The 20-MA of a 4-hour chart is above the price of LUNC, indicating that the trend is still bearish. The same applies to the 9-EMA of a 4-hour chart, which could resist potential increases in the short run.
Terra Classic (LUNC) Fundamental Analysis
One of the main reasons why LUNC has been trending, especially in the Binance exchange, recently is that Terra Classic is applying a 1.2% tax burn mechanism in order to decrease the relatively huge supply of LUNC tokens. This could have a deflationary effect on the price of LUNC without impacting market capitalization.
🔥🚨BREAKING! BINANCE JUST BURNED 2.5 Billion $LUNC for the third #lunc burn period🚨🔥
We are now over 22 Billion TERRA Luna Classic Burned = .30% of the total supply
— Oscar Ramos (@realOscarRamos1) October 17, 2022
Still, given all the FUD that Terra Classic entails after the scandals of the previous Terra ecosystem, LUNC still remains in the top 50 rankings in terms of market capitalization. It has a market cap of around $1.6 billion, making it the 33rd biggest cryptocurrency in the market at the time of writing. This suggests that there are still a lot of people that believe in the traditional Terra ecosystem.
In other news, there are some rumors that Robinhood, one of the biggest exchanges in the world, could list LUNC in the coming weeks. There is already a petition going on with thousands of signatures collected already. As they say, traders should buy the rumor and sell the news, therefore such rumors could impact the price of LUNC in the coming weeks.
Moreover, being listed in Robinhood could have a major impact on the Terra Classic ecosystem, given that it will hugely increase the accessibility of LUNC.
Other than that, LUNC is consistently working on securing partnerships that will facilitate long-term plans for further developing the ecosystem.
#TerraRebels is proud to announce that @NeblioTeam has become our Official Supporter, providing infrastructure, financial & advisory support to help us deliver on our core mission to maintain the #TerraClassic blockchain on behalf of the #TerraClassicCommunity #LUNC pic.twitter.com/EU0l69plwg
— Terra Rebels (@TerraRebels) October 10, 2022
LUNC Price Prediction
Based on this price analysis of Terra Classic (LUNC), the price of LUNC could have a breakout in the coming days. Given the FUD that LUNC has already, the price could continue to decline. Nonetheless, considering the high volatility that LUNC has had recently, a bullish breakout is quite realistic. Hence, there would be no surprise if the price surges close to $0.0004 in the coming weeks.
Takeaways
- Terra Classic (LUNC) is the most trending cryptocurrency in recent weeks.
- Technical factors suggest that there is room for growth for LUNC, despite bearish momentum.
- LUNC is rumored to be listed in Robinhood in the coming months.
- If a breakout occurs, LUNC could aim for $0.0004 in the coming weeks.
