The price of Terra Luna Classic has fallen to $0.00012616 today, representing a drop of 4% in the past 24 hours and a decline of 5% in the past week.
At the same time, LUNC is also down by 27% in the last 30 days, as well as being down by 13% since the start of the year, in contrast to most other major cryptocurrencies.
This makes LUNC a significantly underperforming and undervalued token, yet its community continues to work on plans to boost its ecosystem and attract users to it, with the long-term aim of returning its price somewhere to where it had been prior to May 2022’s collapse.
Terra Luna Classic Price Prediction – What’s the Potential for LUNC to Hit $1 in 2023?
LUNC may have been underperforming in the past few weeks, but this means that its indicators are now in a position where all other things being equal, it should rebound.
For instance, its relative strength index (purple) has dropped to 30 in the past few days, indicating that the coin is significantly oversold.
Similarly, its 30-day moving average (red) has fallen below its 200-day average (blue), while its price has fallen below both.
As such, technicals alone would signal a rally in the coming days, even if such a rally need not be especially big.
If a rally is to happen, it’s very important that LUNC break the $0.00014 resistance level, which has held it back on a couple of occasions in the past week.
If it can return to a stable position above this price, then further gains in the coming weeks will be likely.
Of course, as things stand, it seems that future rallies are depending on meaningful developments in the Terra Luna Classic’s plans to burn LUNC.
While February did bring acceptance of a proposal to re-peg sister stablecoin USTC (which would necessitate large-scale burning of LUNC), not much has been heard recently in terms of putting this plan into action.
At the same time, a recent proposal to increase the on-chain tax burn of LUNC to 0.8% (from 0.2%) has failed to reach a quorum, meaning it won’t be accepted.
This could be regarded as a big disappointment for the community, yet others have interpreted it as a sign that the focus should now move to develop Terra Luna Classic in a way that increases its utility and draws actual users into its ecosystem.
This seems to be the feeling among developers, with Edward Kim publishing a blog yesterday in which he announced he would be focusing on building machine learning-based applications that could be integrated with Terra Luna Classic via Cosmos.
Summing up his new goals, Kim wrote the following:
In summary, I am flipping my script and forging a new identity for myself to align with a vision where I can have greatest impact. I am a machine learning scientist building app-chain utility for LUNC connected via IBC. My personal goal and contribution to this community has shifted to drive a recovery narrative that iterates on the identity and strength of Cosmos, Terra Classic, and my own personal experience.
This kind of statement encapsulates the mood among many developers and contributors to Terra Luna Classic at the moment, which is why proposals to simply increase LUNC’s burn rate haven’t really been accepted.
Again, this may be a disappointment to anyone who wants a quick burn of LUNC’s supply, yet it suggests a long-term plan in which Terra Luna Classic can eventually return to something like its former utility.
Still, even with this development, LUNC tokens continue to be burned, with Binance continuing its destruction of LUNC-based trading fees this month.
Thanks to the exchange’s resumption of its burn, some 50 billion LUNC has been burned to date, up from 36 billion only a couple of weeks ago.
As such, there’s still a good chance that LUNC’s price will rise steadily in the short- and medium-term, with $0.0003 or $0.0004 being a more realistic end-of-year target for the coin.
Of course, many vocal LUNC supporters are hoping for a surge to $0.10 or even $1 in the not-too-distant future.
Such big gains will almost certainly depend on some a substantial ramping up of LUNC’s burn rate, which may or may not be possible now that there’s increasing momentum behind simply developing Terra Luna Classic’s utility.
But with so many people now focused on ways of increasing LUNC’s price, it would be rash to rule it out completely.
Is Now A Good Time to Buy Terra Luna Classic?
While LUNC is very much undervalued, it may not see big rises until Terra Luna Classic sees significant development and/or an increase in its burn rate.
In the meantime, traders seeking short-term opportunities may want to consider other coins, as several newer altcoins and presale tokens are currently showing promising potential.
If you’re interested in exploring these options, the Cryptonews 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.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.