Luna Classic (LUNC) bears remain in control.
The cryptocurrency, which powers the now largely defunct original Terra blockchain that experienced catastrophe back in May 2021 was last changing hands close to $0.00012, only slightly above the $0.0001170 lows it hit earlier this month.
Price predictions thus remain downbeat.
Indeed, despite other major cryptocurrencies rallying in March, LUNC has performed poorly.
The cryptocurrency is on course to have shed around 26% of its value, after falling to the south of a long-term pennant structure at the start of the month.
Technical selling is one argument as to why LUNC has performed so poorly.
But a flight to quality within the cryptocurrency space amid concerns about broader financial stability is another.
After all, Bitcoin, deemed as the largest, most secure and most decentralized cryptocurrency network that, at the moment, stands the best chance of fulfilling its goal of becoming a widely used currency/store-of-value, led the rally in March.
Even despite its 7.5% pullback from earlier monthly highs to the low-$27,000s, Bitcoin is still up around 17.5% on the month.
Given LUNC’s ugly history – the cryptocurrency was hyperinflated from being valued in the triple digits at one point in 2022 to its current value of near worthless after Terra UST depegged from the US dollar last May – traders have likely been dumping the token in favor of projects with a better history of stability (like Bitcoin) and a better outlook.
The original Terra blockchain saw an exodus of nearly all of its development community following the hyperinflation event of 2022 and most analysts deem the outlook for the blockchain’s ecosystem as poor.
Where Next for Luna Classic (LUNC)?
Unfortunately for the LUNC bulls, recent price action is suggestive that Luna Classic might be primed for a fresh push to the downside.
The cryptocurrency appears to be forming a bearish triangle, a break to the south of which could open the door to a push to sub-$0.00010 levels.
The fact that LUNC has continually found resistance at its 21DMA in recent days and is below all of its other major moving averages adds further validity to this bearish thesis.
The fact that Terra founder Do Kwon was recently arrested whilst on the run in Eastern Europe may also be weighing on sentiment, even though he no longer had any links to the project.
Of course, if LUNC can snap the current bearishness and push above the downtrend that has been in play since early March, the door is open for a quick rally into the $0.000145 area.
Can LUNC 10x From Here?
Nothing is impossible in crypto. Perhaps crypto markets go parabolic in the coming months amid a full-blown banking crisis. That could potentially lift highly speculative tokens like LUNC exponentially.
Perhaps new life is breathed into the classic Terra blockchain protocol by the arrival of new developers and promising new projects.
Perhaps the LUNC team announces a new and much more aggressive burn mechanism to reduce supply.
But in the absence of any such catalysts, 10x gains for LUNC seem highly unlikely.
Luna Classic (LUNC) Alternatives to Consider
LUNC’s near-term outlook is pretty ugly. Potential LUNC investors should thus consider looking elsewhere for better potential gains.
A good way to do this might be to check out some high-potential crypto presales – historically, getting in on a project at the early presale stage has been the best way to generate a return in crypto.
In the list below, we’ve reviewed the top 15 cryptocurrencies for 2023, as analyzed by the Cryptonews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
This news is republished from another source. You can check the original article here.
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