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.
