- Terra Luna Classic price has dropped sharply in the past few days.
- This decline is part of profit-taking after it had a spectacular rally.
LUNC price pulled back sharply on Monday as last week’s bullish comeback faded. Terra Luna Classic dropped to a low of $0.00037, which was about 35% below the highest level last week. Still, it remains substantially higher than where it started trading at.
Why is Terra Luna Classic sliding?
Terra Luna Classic is a large community-led cryptocurrency that was abandoned by Do Kwon and his partners. It is a cryptocurrency that remained after its collapse in May. Holders of the token believe that it will move back to become a real contender in the broader blockchain industry.
Terra Luna Classic price surged last week as demand for the coin rose amid new governance strategies. This rally was accompanied by a sharp upward move of other coins associated with the ecosystem.
For example, Terra Classic Dollar (USTC) rose by more than 100% in the past few weeks. Similarly, tokens like Anchor Protocol’s ANC and Mirror Protocol’s MIR also jumped sharply. LUNC also rose after a number of exchanges like KuCoin said that they will continue supporting it.
This week has been different as their prices have retreated. Analysts believe that this sell-off is partly in line with the performance of a pump and dunp scheme. In other words, the price went parabolic as investors pumped it and is now crashing during the dumping.
In line with this, the decline is because of profit-taking that is going on. Historically, financial assets tend to retreat after experiencing substantial gains.
The next key catalyst for Terra Luna Classic will be any potential announcement by exchanges and news from Do Kwon’s Terra. In its recent announcement, the developers said that it was seeing significant user growth. Some of the top apps in the ecosystem are Stader, Leap Wallet, Wicca Money, and Astroport.
LUNC price prediction
The four-hour chart shows that the LUNC price has pulled back sharply in the past few days as the strong rebound took a breather. It has managed to move below the 25-day moving average while the awesome oscillator has moved below the neutral line. A closer look shows that volume has dropped.
Therefore, there is a likelihood that the coin will likely continue falling as sellers target the next key support level at $0.00025. A move above the key resistance level at $0.00040 will invalidate the bearish view.
