The Luna classic price has continued to struggle a month after the crypto was completely wiped out and resulted in billions of dollars in losses. Today, Luna Classic is down by 6 per cent, wiping out gains made in the last two trading sessions.
Seven weeks ago, just before the big crash happened and resulted in Terra Luna prices getting wiped out, the Luna Classic was the fourth-largest cryptocurrency by market capitalization. The problem was that the crypto was algorithmically linked with UST.
When $2 billion worth of UST was unstaked, the de-pegging caused a cascading effect that resulted in the entire Terra ecosystem going down. The prices of, what was previously known as just Terra Luna dropped by 99.99 per cent, wiping out over $60 billion of its market capitalization.
The impact of the Terra Luna resulted in the company creating another coin and naming it the Terra Luna. The original Terra Luna was then renamed Luna Classic. Today, the Luna classic price is trading at $0.00005684. In addition, there are over 6.5 trillion Luna Classic coins in circulation. This has made it harder for Luna Classic to recover due to the huge supply in the market.
However, despite the recent collapse and over 6.5 trillion Luna Classic coins being minted, there are reports of the platform reducing the enormous token supply. The impact of such an action will see the crypto start to go up.
However, investors putting their money into the Luna project will also need caution. Since the Luna has been decoupled from the UST stable coin, it means the crypto no longer serves its purpose. Therefore, there is likely no future for the once-popular Luna classic.
Much of what happens with Luna mostly depends on how the platform will address the over 6 trillion Luna coins in circulation. However, traders can still find tradeable opportunities using intraday charts.
In the 4-hour chart below, the prices have traded sideways for days. However, today’s trading session has shown increased volatility to the downside. Therefore, my short-term price prediction expects the prices of Terra Luna to continue dropping. There is a high likelihood we will see prices trading below the $0.000051 support level.
This post was last modified on %s = human-readable time difference 10:48