Terra Luna Classic Price Predictions: Bearish Outlook Despite Token Burns
The Terra Luna Classic (LUNC) community has been attempting to reduce the token’s supply through burns, but price predictions remain bearish. This week, 700 million LUNC tokens and 230,000 UST tokens were burnt. However, the recent token burns have not boosted sentiment due to the small reduction in overall supply.
UST Depegging and LUNC Hyperinflation
In May 2022, UST, the algorithmic stablecoin of the Terra Classic blockchain, lost its 1:1 peg to the US dollar. This triggered a cascade of outflows from UST and led to hyperinflation of LUNC. LUNC was used as collateral for UST’s peg.
Terra Luna Classic Price Decline
The Terra Luna Classic price has dropped around 25% in the past seven days and is currently just under $0.000095. It broke a key uptrend from November and remains in a downtrend from its December highs above $0.00028.
Token Burns and Supply Reduction
Despite recent token burns, sentiment has not improved because the reduction in supply is minimal. The recent burn of 700 million tokens represents only a 0.00012% reduction in the overall supply of LUNC, which is currently just under 5.79 trillion tokens.
LUNC Token Burns Since May 2022
Since May 13, 2022, a total of 94.78 billion Terra Luna Classic tokens have been burnt. Binance has burned around 52% of these tokens.
Terra Luna Classic Price Prediction: Bleak Outlook
The Terra Luna Classic price is attempting to hold onto its 50DMA at $0.000092. A break below this level could lead to a move back to support in the $0.00007 area. However, the project’s reputation has suffered following the collapse of the original Terra blockchain in 2022, and it currently has very low trade value locked (TVL).
Crypto Alternatives to Consider
Considering the bearish outlook for LUNC, investors may want to explore alternative high-risk, high-reward investment strategies such as crypto presales. These presales offer early investors the opportunity for significant gains if they can identify promising projects with strong teams and revolutionary applications/platforms.
Hot Take: Terra Luna Classic Struggles to Regain Trust
The Terra Luna Classic project continues to face challenges in regaining trust and rebuilding its reputation after the collapse of the original Terra blockchain. The recent token burns have not been enough to improve sentiment, and the project’s lack of trade value locked emphasizes its decline in usage and popularity. With a bleak price outlook and low trade value, investors may want to consider alternative investment opportunities such as crypto presales that offer higher potential returns.
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