- Terra Luna Classic retreated on Tuesday as USTC went parabolic.
- The coin has formed an inverted head and shoulders pattern.
Terra Luna Classic price remained under pressure even after Terra Classic USD (USTC) stablecoin went parabolic. The coin crashed to a low of $0.00028, which was about 23% below the highest level this month. LUNC has a market cap of over $1.7 billion, making it one of the biggest cryptocurrencies globally.
Why is LUNC soaring?
Terra Luna Classic is the remnant of the collapse of Terra. It is the blockchain project that was left to the community as the team led by Do Kwon moved to Terra 2.0. At the same time, Terra Classic USD is the remnant of Terra USD, which was once valued at almost $20 billion.
Terra Luna Classic has done well in the past few months even as worries about its future remains. It has surged by more than 400% from its lowest level this year, making it one of the best tokens in the world. It is still unclear why many investors have rushed to buy LUNC, which is now a pariah in the crypto industry.
One possible reason is that some investors believe that Terra Classic USD will regain its peg in the coming months. Besides, the coin has already rallied by more than 900% from its lowest level this year, giving it a market cap of over $583 million. Still, it needs to rise by another 1,500% to get to $1. Another possible reason is that LUNC has transitioned into a meme coin like Shiba Inu and Dogecoin.
Terra Luna Classic price wavered on Tuesday even as USTC went parabolic. It has risen by more than 46% in the past 24 hours and by 90% in the past seven days.
LUNC price action is mostly because other cryptocurrency prices have also crashed. Cardano crashed to a year-to-date low of $0.39 while Bitcoin is attempting to move below the important support at $19,000.
Terra Luna Classic price prediction
The four-hour chart shows that the LUNC price has been in a strong bearish trend in the past few days after it peaked at $0.00036 on October 2nd of this month. As it dropped, the coin moved below the 25-day and 50-day moving averages.
A closer look shows that Terra Luna Classic has formed an inverted head and shoulders pattern. In price action analysis, this pattern is usually a bullish sign. Therefore, there is a likelihood that the coin will soon have a bullish breakout as buyer target the neckline at $0.00036.
