Terra Luna’s classic USD is up by 60 per cent in today’s trading session. The stable coin is trading at a price level of $0.,02 after it opened the markets trading at $0.014. At one point during the trading session, the cryptocurrency had risen by up to 100 per cent.
At first glance, you would be mistaken to believe that the Terra Luna classic USD is making a comeback. However, more than a month after its prices dropped by over 99.99 per cent, the cryptocurrency appears to be making some gains.
However, these gains may not mean much in the grand scheme of things. For starters, the Terra Luna Classic USD is an abandoned stablecoin. In May, Terra Luna USD, which is the current Luna classic USD, de-pegged from its 1:1 ratio. Since the crypto was algorithmically linked to Terra Luna, it resulted in the minting of the Luna to meet the value of de-pegging and return it to a 1:1 ratio with the USD.
Unfortunately, this is not what happened. Instead, the process of minting and further de-pegging resulted in both cryptocurrencies losing their value. The result was a $60 billion market wipeout for both cryptocurrencies.
By the end of last month, however, TerraForm Labs, the parent company of the two cryptocurrency projects, decided to make a comeback. They forked the two projects and created copies of each. The original projects were then turned into classics, hence the current name of Terra Luna Classic. Since then, the focus has mostly been on the new launches, not the original Terra Luna projects.
Despite today’s 60 per cent price gain, my Terra Luna Classic USD prediction is to the downside. This is mainly based on fundamental analysis, where the likelihood of the crypto being pegged to the dollar again is not guaranteed.
However, for short-term traders, there is a high likelihood that the prices will rise throughout the intraday session to break their previous high of $0.028. This will be a 20 per cent gain from the current price level of $0.022.
This post was last modified on Jun 27, 2022, 14:19 BST 14:19