Luna Classic (LUNC), the token that powers the original but now largely defunct Terra blockchain, has seen a strong rebound from its Wednesday lows on Thursday and, as per CoinGecko, was last trading around 3.5% higher in the last 24 hours just above $0.0001250.
The cryptocurrency had dipped as low as $0.00012 on Wednesday, dropping under its 21-Day Moving Average in the process, but has since recovered in tandem with upside in major blue-chip cryptocurrencies like Bitcoin and Ether.
Price predictions have thus become a tad more bullish.
The former is performing as the US dollar weakens and US yields edge lower amid increased bets that the Fed’s rate hiking cycle is near its end and a cutting cycle will soon follow.
Markets have been amping up dovish bets recently in wake of this week’s downside US inflation data surprises and last week’s weaker-than-expected ISM PMI survey results.
While Bitcoin has been able to conquer the psychologically important $30,000 level, Ether has been able to probe $2,000, seemingly deriving a boost from Wednesday’s successful implementation of the so-called “Shapella” upgrade.
This upgrade, among other things, allows the withdrawal of staked Ether tokens from the Beacon chain for the first time.
Broad crypto market positivity has helped lift LUNC in recent weeks, with the token up around 9% from its March lows.
The cryptocurrency is also above its 21-Day Moving Average properly for the first time going all the way back to February.
Price Prediction – Where Next for LUNC?
LUNC has continually found strong support in the $0.00012 area in recent weeks.
That suggests a retest of support-turned-resistance in the $0.00014 zone is potentially on the cards in the coming weeks.
That assumes that broader positive flows in the crypto space continue for the foreseeable future.
A rally to $0.00014 would require a push above LUNC’s 50DMA, which may be a tough ask, given the level acted as strong resistance as recently as early March.
A rally to $0.00014 would confirm a breakout from a downtrend that has been in play going back to last October, which could potentially open the door to a rise back towards the key support-turned-resistance zone around $0.00020.
That would also require LUNC to get back above its 100DMA at $0.00015 and 200DMA at $0.00018.
Is it Time to Buy LUNC?
The prospect of a short-term pump in LUNC is most certainly there, meaning short-term investors looking to quickly turn over coins might be interested.
Longer-term HODLers should probably look elsewhere, however.
Despite the likes of Bitcoin and Ether being up north of 80% and 65% respectively so far for the year, LUNC is down around 12%.
That’s because most view the original Terra blockchain as a dead project.
To recap, the Terra blockchain ecosystem essentially died last May when the Terra UST (UST) stablecoin lost its 1:1 peg to the US dollar, triggering hyperinflation in the LUNC token that had been used to back it, and triggering massive capital outflows from the Terra Decentralized Finance (DeFi) ecosystem.
Prior to the collapse, Terra had accumulated an army of high-quality developers building all sorts of decentralized applications for its blockchain.
But the collapse triggered an exodus of nearly all of these developers.
Those who remain invested in the success of the original Terra blockchain are largely those who haven’t been able to let go of what was lost, while the vast majority have moved onto to viable crypto ecosystems.
Nothing is impossible in crypto and investors shouldn’t rule out the possibility that the original Terra blockchain may be able to stage a comeback and rebuild a viable ecosystem, pumping LUNC in the process.
But that seems unlikely at this stage.
Most blue-chip cryptocurrencies remain a much safer bet, whilst still offering investors the opportunity to benefit from exponential gains.
Luna Classic (LUNC) and Blue-chip Crypto Alternatives to Consider
While blue-chip cryptocurrencies may continue to perform well in the coming months and years, investors should nonetheless always be on the lookout to diversify their crypto holdings.
One high-risk-high-reward investment strategy that some investors might want to consider is getting involved in crypto presales.
This is where investors buy the tokens of up-start crypto projects to help fund their development.
These tokens are nearly always sold very cheap and there is a long history of presales delivering huge exponential gains to early investors.
Many of these projects have fantastic teams behind them and a great vision to deliver a revolutionary crypto application/platform.
If an investor can identify such projects, the risk/reward of their presale investment is very good.
The team at Cryptonews spends a lot of time combing through presale projects to help investors out.
Here is a list of 15 of what the project deems as the best crypto presales of 2023.
Disclaimer: The Industry Talk section features insights by crypto industry players and is not a part of the editorial content of Cryptonews.com.
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