Luna Classic Comeback: Will it be Short-lived?

Summary:
• The Luna Classic price has been in a strong bullish push since December 20th, resulting in its value surging by over 30 percent.

The Luna Classic price has been in a strong bullish push since December 20th, resulting in its value surging by over 30 percent. Today, with a price gain of less than a percentage point, the crypto looks poised to extend the bullish trend, with intraday data showing a possible continued price gain throughout the session.

Is Luna Classic Poised for a Strong 2023?

Despite starting strongly in 2023, there is a high likelihood that the current bullish push of the Luna Classic will not dominate the markets in 2023. Terra Luna Classic, which came into existence as a result of the Terra Luna project failing and resulting in billions of dollars in losses, has several factors working against it to maintain a continued bullish trend throughout the year.

One of these factors is the investors’ confidence in the project. Despite Luna Classic being the continuation of the older project, it had some traction with users initially, when people were still optimistic the crypto would make a comeback.

However, more than seven months after its launch, most of the project’s early investors, including those who were still holding Luna Classic from the original project Terra Luna, have come to terms with the fact that the project will not return to its former glory. The project’s daily trading volume has also plummeted due to most of these investors abandoning the project.

Luna Classic’s chances of recovery will also depend on the general trend of the crypto industry. Unfortunately, the current crypto environment is causing the entire industry to be in a bearish trend. Due to its significant correlation with the industry, we will continue to see the project continue to drop for the next few weeks, and possibly months.

Overall, in 2023, I expect the Luna Classic trend to mirror 2022, where it will mostly stay in a bearish trend. There is a high likelihood that, in the next few trading sessions, we might see its value dropping below the $0.00010 price level. My bearish trend will only be invalidated if Terra Luna surges above the $0.0002 price level.

Daily Chart