The Terra Classic Coin (LUNC) was unable to stop its previous long downward rally and fell precipitously around the $0.000221 mark. Terra Classic is one of the few major cryptocurrencies that did not gain momentum in the previous month.
However, the reason for its recent downward rally could be attributed to the recent introduction of another lawsuit against Do Kwon, the co-founder of Terraform Labs.
Another factor that could prevent Terra Luna from gaining strength is the meeting of the Federal Committee for Open Meetings, which has Announced another 75 basis point rate hike, reducing investor confidence in risky assets like cryptocurrencies.
Meanwhile, the collapse of several platforms in the previous year was seen as another major factor keeping the Terra Luna coin down, and as a result, regulators are currently tightening their grip on the cryptocurrency sector.
In contrast, the positive crypto market, supported by a combination of factors, was seen as one of the key factors that can help the Terra Luna coin limit its further losses.
Terra Luna Classic Price and Tokenomics
The current price of Terra Classic is $0.000221 with a 24-hour trading volume of $314 million. Terra Classic is down more than 8% in the last 24 hours.
Terra is now ranked No. 36 in the market, with a real-time market cap of $1.4 billion. The total number of LUNC coins in circulation is 6,590,540,703,117.
Three Reasons Behind Terra Classic (LUNC) Losses
There are a few big factors that could be related to the ongoing bearish rally in the LUNC. One of these reasons is the ongoing legal action against Do Kwon, co-founder of Terraform Labs. Kwon is now being defendant in Singapore in a $57 million class action lawsuit.
According to the complaint, the TerraUSD (UST) stablecoin failed to maintain its 1:1 peg as a store of value following the stablecoin’s collapse in May.
Other than that, the reason for the bearish rally could be related to the fact that regulators are currently cracking down on the crypto market, which has resulted in the failure of various platforms over the past year.
Crypto market in recovery
Since the start of the day, the cryptocurrency market has been flashing green as the world’s largest and most popular cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), have managed to see marginal price gains over the past day, holding stable at $20,000 and $1,500, respectively.
Other well-known cryptocurrencies such as Litecoin (LTC) and Ripple (XRP) posted modest gains. As a result, the positive market has had little impact on the price of Terra Classic thus far.
However, since the release of the US Federal Reserve’s rate hike decision, Terra and the rest of the cryptocurrency market have seen a bearish correction.
Terra Luna Classic price goes to $0
Technically, the LUNC/USD pair has been rejected below the $0.000278 level, which straddles a downtrend line. At the same time, Terra Luna is being weighed down by the 50-day moving average.
Immediate support for Terra Luna is at $0.000192 and a break down could expose it to the $0.000127 level. Terra has closed bearish engulfing candles on the daily time frame, indicating the possibility of a continuation of the selling trend.
As a result, you need to look for short positions that are less than $0.000278. Terra Luna Classic may not end on zero, but it’s certainly struggling to maintain its momentum.
This New Traders Coin May Multiply By 30 By 2023
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Dash 2 Trade (D2T) will launch on the LBANK Exchange once the second of nine presale rounds is complete. This is expected to happen in the first quarter of 2023, with the launch of Dash 2 Trade, a state-of-the-art dashboard and intelligence platform.
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