Luna Classic continues to trade within a narrow price range of between $0.00014 and $0.0018 in today’s trading session, extending a horizontal trend that has lasted for more than a month. Today’s less than a percentage point drop also highlights the lack of volatility in the markets, an indication that we might continue to see the horizontal trend for the next few trading sessions.
Why is Terra Luna Classic Struggling
Terra Luna Classic (LUNC) is a cryptocurrency that has been facing several bearish signs, indicating that its downward movement is likely to continue. In terms of news, the CEO of Terraform Labs, Do Kwon, is reportedly evading authorities and hiding in Serbia. An arrest warrant has been issued by South Korean authorities following the collapse of the Terra ecosystem. Since Serbia and South Korea do not have an extradition treaty, it is unclear whether Do Kwon will be extradited. This situation adds to the bearish outlook for LUNC.
In addition, the LUNC ecosystem has been facing challenges since its collapse in May. Developers have been unwilling to create on the network, resulting in a lack of utility for LUNC. This lack of utility translates to dips in the token’s price.
The situation with Do Kwon adds uncertainty to the future of the Terra ecosystem, which could impact the adoption and use of LUNC. Furthermore, the challenges facing the LUNC ecosystem have led to a decrease in its total value locked (TVL). Before its collapse, Terra Classic was one of the largest blockchains by TVL, but the lack of development on the network has led to a significant decrease in its TVL.
Additionally, LUNC’s supply currently stands at over 6.8 trillion tokens, and the current burn mechanism is not reducing the supply enough. This high supply could lead to further price decreases for LUNC.
Finally, the potential extradition of Do Kwon and the challenges facing the LUNC ecosystem may lead to increased regulatory scrutiny. Governments and regulatory bodies may closely monitor the situation and potentially impose stricter regulations on the project, which could further impact its future performance.
Overall, the bearish technical and fundamental factors, along with the uncertainty surrounding the future of the Terra ecosystem and the high supply of LUNC, suggest that the LUNC price is likely to continue its downward trend. Investors should exercise caution when considering LUNC as a potential investment.