Altcoins in the crypto space have been seeing a lot of volatility lately as major cryptocurrencies Bitcoin and Ethereum face resistances which hindered their growth. Luna Classic, the of the Terra Luna ecosystem, is one of those tokens that is facing losses in the short term.
According to , the token has depreciated by 4% in the daily time frame which might be a sign that things might get bleaker for investors.
Previously known as Terra Classic, the old chain’s native coin is now known as Luna Classic (LUNC). Released in May 28 last year, it followed the establishment of the genesis block on the new chain that resulted from the fork.
Positive Developments Contradict Bears
The Twitter space for LUNC has been particularly bullish lately. KuCoin, one of the biggest exchanges in the market, has recently the Luna Classic chain as a validator. This is a complete turnaround in sentiment in Luna Classic.
One of the largest centralized exchanges has now entered the chain once again as a validator 👀 — Classy 🔮 (@ClassyCrypto_)
Due to the massive staking of KuCoin on-chain, LUNC has almost 14% of the total supply being staked. This could signal a positive sentiment built around the ecosystem. Santiment is noting a strong development force supporting the LUNC bulls.
GM 👋 HUGE STAKING EVENT!🚀 KuCoin is BACK With 47.8 BILLION Delegated Taking the #5 Spot & Pushes the Total Staked to 940B at 13.69%🔥Next Goal:
— The Millennial Market (@TMMcryptos)
1 TRILLION Staked!
Since October 2022, the ecosystem has been experiencing strong development activity, reaching a peak last month, January 15th.
UST, Terra Luna’s that made the crypto industry lose billions, is also being planned to be to $1. If this re-peg of the stablecoin is successful, it might help bring more bullishness on LUNC. The of the token should also give a boost as it nears 40 billion LUNC burnt.
Chart: TradingView
Chart: TradingViewRejection At $0.0002091 Drives LUNC Downwards
Bearish or not, the token’s current rejection certainly had an effect on LUNC’s ability to break through the current resistance level at $0.00020916. However, the token’s support at $0.00016897 might hold even as the bearish momentum continues.
For the token to continue its climb, LUNC should close above $0.00016897 support as a break on this support might make the token revert to $0.00015115. Investors and traders should also monitor the token’s correlation with major cryptocurrencies.
LUNC total market cap at $1 billion on the daily chart | Chart:
At the time of writing, it has a strong correlation with Ethereum which has currently entered a consolidation period above $1.6k. If ETH bears break through this support, we might see LUNC follow the top altcoin.
LUNC bulls should watch internal and external developments as this could either give confidence or spark skepticism for token’s price movement.
For now, investors and traders should focus on strengthening the token’s current support with a possible target above $0.00020916. But LUNC bulls should brace for short to medium term pain as the token has a chance to decline in the coming days.
-Featured image from Telegaon
