- Terra chain founder Do Kwon was found liable for defrauding customers.
- LUNC tumbled by 28% in 30 days, dropping below $0.00014 key support.
- Pro crypto analyst expects Terra Classic’s resurgence on BTC halving.
The gloomy cloud over Terra Luna Classic has kept LUNC trading in a descending parallel channel over the past 30 days. Experiencing a 28% monthly drop, LUNC failed to restore its relevance and is now positioned at #134 in crypto charts by global market capitalization.
The Dark Shadow of Terra Cast on LUNC
10% of the deficit came over the past seven days, despite the leading digital asset, Bitcoin (BTC), recording 3% gains. However, crypto analysts see a ray of sunshine judging by Terra Classic’s long-term bullish pennant, as LUNC’s 300% December gains have completely evaporated, and a price reversal becomes more plausible.
Crypto traders ascribe the recent downward spiral in Terra Classic’s price movement to the TerraForm Labs vs. the U.S. Securities and Exchange Commission (SEC) case. In its latest developments, Terra chain’s founder, Do Kwon, was found liable for misleading customers, implying that Terra Classic USD (UST) was not an algorithmic stablecoin.
The infamous 2022 Terra Luna crash crumbled Terra Classic USD (UST) to pieces in a matter of days, sending the $1 peg stablecoin to below two cents. The devastating fiasco caused a $40 billion shortfall for crypto investors, as UST and LUNA were tied in a dual mechanism.
LUNC Unfazed by Terra vs. SEC Case?
As the groundbreaking case in Manhattan continues, Terra Classic’s community members share their takes on the high-profile legal suit. LUNC node validator Naatie Paat thinks “it may temporarily affect the LUNC price, possibly due to people not being educated on the fact that we are fully community-led and separate from TFL.”
Terra Classic’s chain comes from the original Terra (LUNA) blockchain, which was given to the community and has been separate from TerraForm Labs since May 2022. The relaunched Terra 2.0 didn’t garner as much attention from veteran crypto investors, who now believe Terra wouldn’t impact the LUNC vs. SEC case developments.
Sponsored
Meanwhile, crypto analysts are using technical indicators to determine if Terra Luna Classic’s run to $0.00058 is not out of the equation. Crypto analyst Javon Marks highlighted this price target based on Terra Classic’s previous breakout to $0.000258 on December 5, 2023.
For this theory to sustain, LUNC must enter a bull cycle around Bitcoin’s halving. Occurring around April 20, the halving induces a tighter BTC supply by slashing Bitcoin mining rewards in half, from 6.25 BTC to 3.125 BTC.
On the Flipside
- The further price movement of Terra Luna Classic heavily depends on the developer activity on the Layer-1 chain.
- The LUNC community voted to impose a KYC procedure for devs building on the Terra Classic chain to avoid sabotage shorting practices.
Why This Matters
The game-tested Terra Classic blockchain has a vast community of members around the globe despite dropping out of the TOP 100 by global crypto market cap.
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