Popular crypto connoisseur Javon Marks has trumpeted to his 56.1K followers on X, about an incoming price trend reversal on Terra Luna Classic (LUNC). Namely, this downtrodden altcoin broke down in mid 2022 during the TerraForm Labs ecosystem fiasco, but was later given back to the community behind it.
555% Rally Setup For Terra Luna Classic Explained
After TerraForm’s bankruptcy, the volunteer developers set up new representative websites for the LUNC community. However, the lack of action in developing new infrastructure & stagnant trading volumes has pushed Terra Luna Classic (LUNC) out of the TOP 300 by crypto’s global market capitalization.
Now, the analyst cites “bullish patterns on multiple different metrics”, that point towards this potential price trend reversal. If it plays out, LUNC’s price could rocket to $0.0004295, a level unprecedented since the crash, but are the metrics really flashing all-bullish? DailyCoin’s dedicated research team dug into the key on-chain signals to find out.
What On-Chain Signals Tells Us About LUNC Price
Firstly, the Bull Bear Power (BBP) metric flashed a bearish stance, even though the embattled altcoin was in green territory for the most part of last week. Further on, the slightly negative Chaikin Money Flow (CMF) doesn’t help the case of LUNC bulls, with the only clearly bullish key signal being the Stochastic Relative Strength Index (StochRSI).
Additionally, it’s fair to note that Terra Luna Classic’s (LUNC) price lagged behind the broader market’s bull run as Bitcoin (BTC) tacked on $122K. As portrayed in the chart above, LUNC’s price, depicted in purple color, had a hard time staying above the red-label Bollinger Band (BOLL).
On the bright side, both the regular Relative Strength Index (RSI) & the Stochastic RSI version confirm a heavily oversold position, meaning that the digital asset is underpriced. However, trading volumes below $10 million a day could keep LUNC’s potential below the realization point.
On The Flipside
- Nearly 16% of all remaining Terra Luna Classic supply is staked, while Binance remains loyal to the monthly LUNC burning initiative, continuously reducing the over-minted asset.
Why This Matters
The volunteer community took it upon themselves to restore some of the Layer-1 chain’s original functionality. Despite the unfavorable historical price performance, LUNC remains relevant solely due to community efforts.
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People Also Ask:
A 555% rally would push LUNC from $0.000064 to ~$0.000419. While posts on X cite bullish signals like RSI breakouts and wedge patterns, the massive 5.5T circulating supply and past volatility post-2022 UST collapse make such gains ambitious.
Community burns (411B+ LUNC torched), upgrades like v3.3.0, and projects like Terraport and Garuda DEX fuel optimism. A 1.6B weekly burn sparked a 10% surge recently, but sustaining momentum is tough.
LUNC’s 2022 downfall from $119 to $0.00001675 after UST’s depeg shows its fragility. Hyperinflation (6.9T total supply) and market-wide corrections could cap gains or trigger pullbacks below $0.00006.
LUNC’s forming a rising channel with RSI at 43, signaling growing momentum. Breaking $0.00008 could target $0.0001 (52% gain), but $0.0004295 (555%) needs massive volume and market support.
Burns reduce supply, but 1.6B weekly burns are a drop against 5.5T circulating tokens. Even with Binance’s 400B+ burns, historical data shows limited price impact unless adoption surges.
