Terra Luna Classic Price Prediction as LUNC Market Cap Blasts Above $1 Billion – Time to Buy?

Terra Luna Classic Price Prediction as LUNC Market Cap Blasts Above $1 Billion – Time to Buy？

Source: TradingView

Terra luna classic has risen to $0.00016897 today, capping a 1% rise in the past 24 hours, as the cryptocurrency market recovers from recent losses. This price marks a 9% drop in the past week and a 6.5% decline in the last 30 days, as LUNC teeters between recovery and relapse.

However, today's movements have enabled LUNC to reclaim its $1 billion market cap, which it had lost over the weekend. And with its 24-hour trading volume also returning to $100 million, there's enough liquidity in its market to feed further rises in the near future.

Terra Luna Classic Price Prediction as LUNC Market Cap Blasts Above $1 Billion – Time to Buy？

LUNC's indicators suggest that it could be recovering from its recent losses, with both main indicators signalling potential rallies. Its relative strength index (purple) has risen from 20 to 50 in the past few days, meaning that buying momentum could increase and push its price further.

Source: TradingView

At the same time, LUNC's 30-day moving average (red) has turned upwards again after falling below its 200-day average (blue). Again, this suggests that a positive movement may be incoming.

LUNC's rise to day comes as its trading volume rises from a low of $47 million over the weekend to over $100 million yesterday. This is another sign that a rally could be coming, and that now may be a good time to buy.

In terms of levels, it will be interesting to see if LUNC can break through the $0.00017 resistance level. If it can, then a more prolonged rally may be possible.

As far as fundamentals go, there are plenty of reasons to be optimistic if you're a LUNC holder. In particular, the now-accepted proposal to re-peg USTC is very bullish for the altcoin, since re-peg its sister stablecoin would necessitate a large-scale burn of LUNC tokens.

As its authors write, the accepted proposal entails “designing a more efficient system for LUNC and USTC that can burn more than the tax rate can.” As such, the medium-to-long term will likely mean that LUNC's burn total -- which is currently at 39 billion -- will rise substantially.

And it really needs to, because with a circulating supply of 5.9 trillion, there's just way too much LUNC in the market for it to experience substantial price rises anytime soon.

However, there's little doubt that the Terra Luna Classic community is working hard to bring this massive total down. Recent months have seen a range of various proposals, from the establishment of a task force aimed at boosting Terra Luna Classic development and adoption, to the raising of minimum commissions (for validators) to 5% (which could result in more LUNC burning).

While division within the Terra Luna Classic community does remain, it's clear that the overriding focus is on burning more LUNC and boosting its price, while also making the Terra Luna Classic network more usable.

Because of this, the overall longer-term picture is positive for LUNC. There's a good chance it could recover to $0.0002 in the next few months, with a rally $0.0003 possible by the second half of the year.

As for reaching whole numbers, it's clear that the re-peg proposal will have to be fully realized -- along with the burning of trillions of LUNC -- before the altcoin can make significant progress in this regard. Still, the foundations for such progress have been laid, so it may only be a matter of time.