Despite Binance’s latest monthly burn of over $150,000 worth of LUNC tokens and the recent hiring of a new, highly experienced Senior Cosmos developer to the layer-1 blockchain task force team, Luna Classic (LUNC) is threatening a breakout to fresh nine-month lows.

As a result, price predictions remain pessimistic.

LUNC is the token that powers the original Luna layer-1 blockchain protocol that experienced catastrophe last year.

Just under one year ago, the blockchain’s algorithmic stablecoin TerraUSD (UST) depegged from the US dollar after the value of the collateral backing it (the LUNC token) fell below the 1:1 dollar value of the UST supply.

UST owners redeemed their tokens on masse for LUNC amid fears the token was now undervalued (akin to a bank run), triggering hyperinflation of LUNC via a so-called death spiral.

The Terra blockchain ecosystem has been reeling ever since, having experience a mass exodus of Decentralized Finance projects and developers, as well as capital.

Despite the best efforts of the remaining Luna Classic community members to breathe life back into the project, LUNC has struggled to regain much lustre.

Despite Bitcoin nursing gains of over 70% so far this year, LUNC is down over 30%.

Price Prediction – Here’s Where Luna Classic (LUNC) is Headed Now

LUNC/USD was last changing hands just above $0.0001.

If the cryptocurrency falls beneath this level, the door is open for a test of last summer’s lows in the $0.0009 area.

Meanwhile, a break below here could see LUNC collapse all the way back to record lows in the mid-$0.0004s.

That would mark a further near-60% collapse from current levels.

And given the pessimistic outlook for the Luna Classic blockchain’s full-scale revival, owing to the irrevocable harm done to the project’s reputation after its ecosystem collapse a year ago, LUNC price predictions will likely remain downbeat.

#Binance #crypto2023 #luna #lunc #luna2

LUNA recently underwent a successful upgrade to v2.3.1, thanks to a strong show of support for proposal 4717. While the Terra community celebrated the milestone on Twitter, on-chain metrics tell a different story. 

Development activity for the blockchain has been steadily declining for the past two months, raising concerns about the future of Terra’s growth and adoption. 

Bearish Outlook For LUNA

Terra’s LUNA coin is currently priced at $1.21 on CoinMarketCap, with a 24-hour trading volume of $38,388,955. Unfortunately, the last 24 hours have been very challenging for the cryptocurrency, as it has experienced a 4.29% decrease in value.

Despite the bullish rally of 2023, LUNA failed to regain momentum, and as of the time of writing, the coin has plummeted over 40% on a year-to-date (YTD) basis. Indicators suggest that the outlook for LUNA is bearish. 

The Relative Strength Index (RSI) has fallen below the neutral 50 level, indicating that selling pressure is strong. Furthermore, the Moving Average Convergence Divergence (MACD) has shown a bearish crossover, marking the start of a downtrend.

Terra’s upgrade to v2.3.1 introduces a host of new features, including the integration of the Alliance module into the Terra mainnet. The open-source Cosmos SDK module facilitates economic alliances among blockchains through interchain staking, enabling chains to add assets from other networks or native applications in a permissionless way. 

Alliance supports staking for various tokens, including stablecoins, LP tokens, and liquid staking derivatives, making it a flexible tool for the ecosystem.

Terra hopes that the integration of Alliance will attract more users, liquidity, and developers to its network. However, on-chain metrics tell a different story. Despite the upgrade, Terra’s development activity has been declining, with the weighted sentiment turning negative. 

This indicates that investors remain skeptical of LUNA. As the blockchain industry continues to evolve rapidly, Terra may need to work harder to stay competitive.

Despite the drop in development activity and negative investor sentiment towards LUNA, the integration of Alliance module into the Terra mainnet is a step towards a more flexible and inclusive blockchain ecosystem. 

Terra hopes that this upgrade will attract more users, developers, and liquidity to the platform, ultimately leading to growth and large-scale adoption.

#luna #luna2 #lunc #terra #terraluna