Terra Classic, also known as Terra Luna Classic has gone through many pumps and dumps of market turmoil. One of the most asked questions on Terra Luna Classic is “Will Terra Luna Classic Price Recover to $1 price again?”. Here in this article I will analyze and forecast the probability of the $LUNC Luna classic coin reaching $1.
Before we discuss the forecast of Terra luna classic going back to one dollar price you have to understand a few factors that will affect the price of LUNC coin in the long term.
Origin of Luna Classic
Before we break down the technical analysis of “Will Luna Classic Recover to $1?” We need to understand what exactly happened with the old Terra Luna and how Luna Classic originated out of nowhere.
Terra Luna classic was the original Terra luna project that first came into existence and experienced a massive dump after the failure of Terraform lab’s algorithm stablecoin. Later after the proposal was released, the members of the Terra community had the chance to vote for the creation of the new Terra 2.0. As voting was in favor of the new Terra project, Terra 2.0 was formed which is now called ‘Terra Luna’.
Terra 2 seemed to abandon the old Terra classic crypto coin but that did not happen. Albeit the investors condemned the new project and still embraced the old Terra luna classic crypto.
The Massive Supply of Terra Luna Classic
After the massive sell-out of the Terra Luna coin, the cryptocurrency was left with a massive supply of 6.5 trillion tokens in the circulating supply. This massive circulation supply is the main reason why it might be so difficult for Luna’s classic price to move up.
Terra Coin Recovery Possibility
There are definitely chances for Luna to recover but it is definitely not going to be as easy as it seems. Naive investors are buying luna at this dip not knowing how hard it is for Luna to regain its price before the crash. One of the major causes of difficulty for Luna to regain higher prices is the inflated supply.
Due to the failure of the UST stablecoin algorithm the Terra luna coin circulating supply inflated to 6.5 trillion tokens. This is what has caused the luna holders to panic and because of this investors are panic selling luna coins. So if you are planning to make a decision to buy Luna coin, think twice before you buy.
Burn Proposal on Binance Exchange
CEO of the world’s largest crypto exchange has been in the talks regarding the potential burn proposal of a 1.2% tax burn mechanism added into the Binance exchange. This proposal is very closely speculated by the members of the Terra luna classic community as this seems to benefit the holders of LUNC in the long term.
Binance exchange adding a Burn mechanism for Terra luna classic is very important because Binance is the world’s largest exchange with billions of dollars being traded every day and if Luna Classic gets a burn mechanism implemented into the Binance system it is definitely going to burn billions of Luna classic every day. This resulted in a sustainable and steadily growing price of the Luna classic.
Luna Classic Price Technical Analysis
Technical analysis of the LUNC coin is something that is often unlooked. So decided to do a little TA on Terra Luna Classic coin. Through Technical analysis, we revealed something on the chart that should not be ignored and this could very probably trigger a massive breakout in luna’s classic price.
The recent chart of Luna classic shows a formation of the Bullish Flag pattern which is an upward breakout signaling pattern. Along with the bullish flag, A triangle pattern is also forming on the LUNC chart lately.
These two chart patterns are often true and mostly trigger a price breakout. According to these price patterns we can expect prices to go up very soon. After the huge crash, the Luna classic is definitely headed for a substantial price recovery.
Can Luna Classic Recover to $1
Terra Luna Classic Coin has a possibility of reaching to $1 price but for that to happen a huge deflation of supply is very necessary. Luna Classic crypto can still move upwards if it gets support from big exchanges such as Binance and Kucoin. Once the burning mechanism of 1.2% tax is implemented into the system of exchanges and Terra classic blockchain, later that we can expect a massive rally in the price of Terra luna classic coin.
Luna Classic coin can potentially move towards $1 price if there is a significant reduction in the current circulation supply. The de-peg event of UST stable and algorithmic transfer between Terra Luna and UST coin has caused a massive deflated supply of 6.5 trillion tokens in the supply.
If this information does not convince you, I have previously written another article on the prediction of Terra Luna recovering back to $1.