The Terra Luna Classic has continued to struggle in the markets months after it was rebranded following the collapse of the original Terra Luna crypto. Today, it is down by less than a percentage point. However, the past few trading session have seen Terra Luna classic become weak in the market and has traded without any volatility or momentum.
To recap, the Terra Luna classic came into existence following the collapse of Terra Luna in Mid-May. This was after TerraUSD (UST) de-pegged from the Luna cryptocurrency which was triggered by the UST sell-off. As an algorithmically linked stablecoin, the sell0-off and de-pegging meant that more Luna needed to be printed to maintain the peg. The result was a Terra Luna crash that resulted in a loss of between $40 to $50 billion.
Months after the rebranding, the Terra Luna Classic price struggle resulted in a proposal of the introduction of transaction tax. In September, the proposal was voted on and passed. According to reports, the 1.2 per cent transaction tax would go into Luna Classic token burning, which will help address the current oversupply in the market and push the price of the Terra Luna high. The theory was proved in a recent token burn by Binance, which resulted in a 60 per cent price surge within a few hours.
Luna Classic Price Prediction
Despite recording a 60 per cent price gain on September 26, following the Luna classic token burn, the crypto failed to continue with the bullish move. One month later, the trend has been mostly to the downside, with the past few trading sessions showing signs of a horizontal market.
Looking at the chart below, it is clear that the Terra Luna Classic price continues to trade with no momentum or volatility. We can also see it has traded in a sideways market for almost a week. Therefore, my price prediction expects the current sideways market to continue. The prices will continue trading within a narrow range of between $0.00022 and $0.00027. A trade outside the range will invalidate my horizontal market analysis.
Luna Classic Daily Chart
