Key points:
- LUNA and LUNC See Significant Setbacks After Aggressive Surge
- Terra Luna and Terra Luna Classic History and Burn Scheme
- Where Next? LUNA Price Projections
Terra Luna (LUNA) and Terra Luna Classic (LUNC) have surrendered notable price gains over the past 24 hours. However, this has to be put in the context of early September gains capped by a surging advance Friday. The key question now, where next for LUNA?
LUNA and LUNC See Significant Setbacks After Aggressive Surge
Terra Luna (LUNA) and Terra Luna Classic (LUNC) have surrendered significant price gains this week, with peak-to-trough drops of 30-40% from last Friday through Monday. Although this seems like a notable setback, this must be put into the context of strong early September gains.
Terra Luna (LUNA) surged Friday to a peak above 7.50, having been trading as low as just above 1.50 in late August, posting solid gains to above 2.00 into early September. It was the aggressive, +200% gain on Friday that really caught the attention of cryptocurrency investors (possibly driven by a new burn scheme, see below).
Terra Luna Classic has echoed the surge and corrective setback seen by its offspring, LUNA.
Also Read: The Most Recession-Proof Cryptocurrencies
Terra Luna and Terra Luna Classic History and Burn Scheme
The Terra blockchain spectacularly collapsed in May 2022, pulling the whole decentralised finance world down with it and taking the cryptocurrency market into a bear market. This was just one event amongst a domino effect in the crypto world that saw prices collapse, dubbed the Crypto Winter. The second version of LUNA was created after Terra lost $60 billion due to its May implosion. The original Terra chain was rebranded Terra Classic and its native token – the former LUNA, now Luna classic (LUNC).
Burn scheme: The recent solid, then aggressive rallies for both Terra Luna and Terra Luna Classic have potentially been driven by community-driven initiatives to restructure the damaged ecosystem. This includes a transaction tax that will be used to buy up and burn, that is permanently destroy, coins in order to cut the total supply.
Where Next? LUNA Price Projections
Despite the roller-coaster ride since Friday, it can be argued that alongside the whole cryptocurrency market, both LUNA and LUNC have been developing larger basing patterns, May through August. In addition, both coins were already rallying, with more gradual, consistent and solid price action before Friday’s upside price explosions. From a technical analysis perspective, the setbacks from Monday can be viewed as simply corrective of the impulsive gains from late last week.
For LUNA, whilst holding above 3.7850, we would see the short and intermediate-term outlook as bullish and look for upside retests to 5.0500 and 7.6700 into September. Bigger picture into Q4 2002, the threat is for an even more robust recovery to target 10.0000.
Below 3.7850 would open risk back down to 1.9575 and even 1.5010.