Terra Luna Classic (LUNC), the cryptocurrency that powers the original Terra blockchain, is currently facing challenges as it struggles to recover from the blow it experienced in May 2022. During that time, its UST algorithmic stablecoin lost its 1:1 peg to the US dollar, leading to a significant decline in value. Currently priced at around $0.000055 per token with a market cap of about $380 million, LUNC is underperforming the broader market with a 0.7% decrease in the last 24 hours, compared to Bitcoin’s (BTC) gains of approximately 1.5% during the same period.
Bitcoin has been able to maintain an upward trajectory this week due to optimism surrounding the expected approval of spot Bitcoin ETFs in the US. This development has helped shield the BTC price from rising macro headwinds such as increasing US bond yields and falling stock prices, which have been influenced by strong US data. Unfortunately, LUNC has been unable to overcome these macro challenges and remains locked within a downtrend that has persisted for the past 12 months. Currently down around 12% for the month, LUNC lags behind Bitcoin which has achieved monthly gains of nearly 7%.
The future outlook for Terra Luna Classic appears bleak, despite efforts by developers to promote its success. The blockchain is planned to be put into “maintenance mode” in the fourth quarter of the year to address blockchain and dApp issues. However, the damage caused by the 2022 collapse has significantly impacted the trust and credibility of any project associated with “Terra Luna” in its name. Investors remain hesitant to engage with the blockchain, and its trade value locked (TVL) stands at a meager $1.46 million according to DeFi Llama. This is a significant decline from its peak TVL of almost $35 billion prior to the collapse. Consequently, LUNC is now regarded as a “shitcoin” and has fallen into disfavor within the crypto community.
The highly bearish sentiment surrounding LUNC has led to price predictions indicating a potential further decline of over 20%. If LUNC continues to face resistance at major moving averages, it is highly likely to reach its all-time lows around $0.000044. This pessimistic outlook for LUNC contrasts with the broader crypto market, which is expected to experience upward momentum in the coming months.
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Given the dire outlook for Terra Luna Classic, crypto investors are advised to explore alternative investment options. One such strategy is participating in crypto presales, which offer a higher risk-reward profile. In presales, investors purchase tokens of emerging crypto projects to support their development. These tokens are typically sold at lower prices, and historically, presales have delivered significant gains for early investors. Many of these projects are backed by exceptional teams and have visionary plans for revolutionary crypto applications or platforms. Identifying promising projects can offer investors an attractive risk-reward ratio for their presale investments.
For investors seeking potential presale opportunities, Cryptonews provides valuable insights by curating a list of what they deem as the best crypto presales of 2023. These projects have the potential to deliver exponential gains and are supported by reputable teams with innovative visions for the crypto industry.
Disclaimer: It is essential to note that investing in crypto is a high-risk asset class. The information provided in this article is for informational purposes only and should not be considered investment advice. Investors should be aware of the potential risk of losing their capital.
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