Terra luna on cryptocurrency exchange market . A cryptocurrency is a digital or virtual currency that uses cryptography for security
The Terra Luna Classic price has pulled back in the past few days as demand for the coin wanes. The LUNC token is trading at $0.000095, which is about 42% below its highest point in June. At its peak, the coin was trading at about $120, meaning that it is the biggest blowout in the cryptocurrency industry.
Terra Luna Classic is a cryptocurrency that represents the remnant of what was once a top ten cryptocurrency valued at over $40 billion. In its prime, the coin derived its value from the value of TerraUSD, an algorithmic stablecoin that was then valued at more than $15 billion.
After the stablecoin lost its peg, the developers decided to do a hard fork of the original Terra and form another cryptocurrency. The original one changed its name to Terra Classic, while Terra USD changed its name to TerraClassicUSD (USTC).
Today, USTC has a market cap of over $377 million, while LUNA is valued at over $229 million, according to CoinGecko. As a result, the stablecoin has struggled to regain its peg. On the other hand, it has become challenging to determine the real market cap of Terra Luna Classic.
Therefore, from a fundamental perspective, there are concerns about whether Terra Luna Classic is a good investment since it has no role. For one, its stablecoin is no longer stable, and there is an overall distrust of the network. In addition, some analysts believe that Terra’s original and new versions are designed to rip investors off.
Also, South Korean and American regulators are pursuing Terra’s leaders. For example, South Korean regulators raided the home of Terraform Labs’ co-founder.
The four-hour chart shows that the LUNC price has been in a downward trend in the past weeks. A closer look shows that the coin has been trading in a significantly lower volume environment. The coin remains below the 25-day and 50-day moving averages and is slightly above this month’s low of $0.000086.
Therefore, I suspect the downward momentum will continue as sellers target the next key support level at $0.00008. However, because of its low volume, Terra Luna Classic can become a victim of a pump and dump scheme or a wash sale.
This post was last modified on Jul 27, 2022, 10:01 BST 10:01