Is Terra Classic on the Verge of a Crash? Terralab vs SEC Hearing Indicates a Potential 30% LUNC Price Decline
Terra Luna Classic (LUNC) faced a 32% drop in price due to the recent slump in Bitcoin and a “stiff seller congestion zone.” Additionally, an upcoming legal battle between Terraform Labs and the SEC on March 25th could have a significant impact on LUNC’s future.
Despite the bearish trend, there is hope for LUNC as a chain upgrade is planned for the same day as the legal clash. This upgrade, known as v2.4.2, aims to introduce Inter-Blockchain Communication (IBC)-Hooks, which will allow decentralized applications (dApps) to seamlessly integrate with the Terra Luna Classic network. This upgrade brings new opportunities for growth and development, providing some optimism amidst the regulatory uncertainty.
However, the outlook for LUNC’s price remains uncertain. The cryptocurrency has seen a significant correction of 48% from its peak in March, and attention is now focused on the critical double-bottom support at $0.00012, which was previously reached in February. If this support level holds, it could trigger a rebound and bring some optimism after a notable rally to $0.000255.
Nevertheless, technical indicators suggest a bearish trend, with the Relative Strength Index (RSI) below the 50 midline and the Awesome Oscillator (AO) signaling a negative shift. This indicates a possible continuation of the downtrend. If selling pressure persists, LUNC’s price could drop further, possibly reaching $0.00009170, marking a 30% decline from current levels.
However, there is still a possibility of a bullish recovery if buyers return to the market. A breakthrough above the resistance level could signal a trend reversal, attracting buyers and pushing LUNC’s price towards $0.00025000.
In conclusion, the outcome of the upcoming legal battle, the chain upgrade, and the prevailing market conditions will likely determine the short-term direction of LUNC’s price. Investors should closely monitor these events as they could have a significant impact on the cryptocurrency’s performance in the near future.