Despite Luna Classic’s trading volume doubling in the past 24 hours and hitting $150 million, its price has not been impacted during that period. In today’s trading session, it is down by 2 per cent, extending the bearish trend of the past two trading sessions.
The current price drop comes amidst concern in the cryptocurrency industry following the recent collapse of the FTT token and the FTX crypto exchange. Luna Classic, having suffered a similar fate in mid-May, which saw its market capitalization wiped out by over 99 per cent, has suffered from the recent fallout, with its reputation being compared to the current FTT token collapse.
The crypto markets have also grown extremely nervous about how Washington will respond to the latest cryptocurrency fiasco, with many fearing there will be legislation aimed at regulating the decentralized industry.
Some of this legislation includes the Lummis-Gillibrand Responsible Financial Innovation Act, which aims to delineate the jurisdiction over digital assets between the Securities and Exchange Commission (SEC) and the Commodities and Futures Trading Commission (CFTC), which will see exchanges required to register with CFTC, further centralizing the industry.
The Digital Commodities Consumer Protection Act (DCCPA) will also give the government more power over digital cryptocurrencies, and most experts see this legislation as a further catalyst for the continued bearish trend.
Luna Classic Price Forecast
Luna Classic has been in an aggressive bearish trend since October 2. However, in the past two weeks, the aggressiveness of the bearish trend has increased, which has seen Luna Classic’s value drop by over 30 per cent.
Therefore, based on the recent price action, I expect the current bearish trend to continue. There is a high likelihood that we might see prices dropping to hit the $0.00013 support level in the next few trading sessions. However, a trade above yesterday’s price high of $0.00017 will invalidate my analysis and point to a possible price reversal.