The post Terra Classic (LUNC) Price Might Crash 80% If Bitcoin Drops Below This Crucial Level appeared first on Coinpedia Fintech News
In a recent tweet, Tobias Andersen, a senior software developer, and former Terra Classic layer-1 team member, raised concerns about the possibility of LUNC revisiting its all-time low (ATL) value of $0.00001675. He believes that if the selling pressure on Bitcoin (BTC) continues and drives the cryptocurrency to the $22,500 price range, LUNC’s price could suffer further.
Crypto Market Fakeouts and Their Impact
Andersen, known as “Zaradar” on Twitter, has warned against crypto market fakeouts, which occur when an asset falsely indicates a price breakout, causing a rapid price reversal. He emphasizes that such events can harm traders and negatively impact market sentiment. In response to a recent drop of 5% in BTC’s price within an hour, he expressed his concerns, particularly as BTC fell to $26,777, reaching a 7-week low. The developer also noted that these fakeouts can have a detrimental effect on other assets.
Selling Pressure on Bitcoin Raises Concerns
The immense selling pressure witnessed in the Bitcoin market this week has contributed to the prevailing pessimistic mood. Crypto analytics firm Material Indicators reported a significant transfer of 9,800 BTC from an unnamed wallet, which has generated speculations of a “possible government seizure” or “whale dumping.” Although the transaction’s source remains unknown, experts speculate that it might be a routine transfer between two major exchanges or businesses.
BTC’s uncertain future has also impacted other assets, including LUNC. As a low-cap altcoin, LUNC has faced challenges in gaining traction and recovering from its recent price drop. Despite experiencing a 10% gain in the past two days, the token is still down 81% from its all-time low. As Zaradar predicted, if BTC’s price drops to $22,500, LUNC might face further losses and retest its all-time low, potentially leading to a decline of Terra (LUNA) to $0.50.
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Terra Classic Community Support and Future Prospects
The Terra Classic community continues to rally behind the revitalization initiative. The L1 team recently recommended a chain update to v2.0.1, aligning with the capabilities and interoperability of Cosmos and Terra 2.0. The community’s overall approval of these updates could pave the way for new ventures and partnerships, fostering the growth and development of the Terra Classic ecosystem.
In conclusion, the volatile nature of the crypto market necessitates diversification for investors. While LUNC may face short-term hurdles, the future of the Terra Classic ecosystem depends on its continuous improvement and adoption of new use cases.
As Andersen succinctly stated, “if BTC reaches $22,500, LUNC will retest its all-time low, and LUNA will likely drop below 50 cents or less.”