Last Friday’s crypto market dip on Silvergate Bank concerns weighed heavily on Luna Classic (LUNC), the cryptocurrency that powers the original but not largely defunct Terra blockchain ecosystem. After dipping more than 10% on Friday from near $0.00017 to around $0.00015, the cryptocurrency has since eased a little lower to stabilize in the mid-$0.00014s. Price predictions thus remains somewhat downbeat.
Price Prediction – Where Next for LUNC?
What had been a key support area around $0.0001550 should now be viewed as an area of near-term resistance. Meanwhile, traders are also monitoring support just under $0.00014 in the form of a late 2022 low. As the broader cryptocurrency market stabilizes ahead of a busy week of macro events, including a barrage of key US jobs data and a testimony from Fed Chair Jerome Powell before the US Congress, LUNC bulls will be hoping the cryptocurrency can continue to find support above this level, as was the case last Friday.
If this support area was to fail, a retest of the late 2022 lows in the $0.000127 area would become a distinct possibility. That would take LUNC’s drop since the 2023 highs around $0.00021 to a massive 40%.
Singapore Opens Investigation into Terraform Labs
Reports in the crypto media on Monday suggest that authorities in Singapore have opened an investigation into Terraform Labs, the company behind the development of the Terra blockchain. Singapore is where Terraform Labs was previously incorporated and where, for a long time, the blockchain’s creator Do Kwon had been residing.
Do Kwon, who is South Korean, is wanted by South Korean police and is currently thought to be in hiding in Serbia. Do Kwon is wanted over his role in the spectacular collapse of the Terra blockchain ecosystem last May – where algorithmic stablecoin UST lost its peg to the US dollar, triggering a hyperinflationary spiral in LUNC and causing a $40 billion wipeout in the Decentralized Finance (DeFi) ecosystem, the reverberations of which are still being felt today.
The US Securities and Exchange Commission has accused Do Kwon and Terraform Labs of fraud and alleges that Kwon has laundered over $100 million in Bitcoin that he stole from the Luna Foundation Guard.
LUNC Alternatives to Consider
LUNC’s long-term prospects as a cryptocurrency are poor. The Terra community of developers and supports was irrevocably damaged by the collapse of the Terra ecosystem last year, and the damaged ecosystem probably doesn’t stand a chance of catching up to thriving and fast-growing ecosystems like Ethereum and its many growing layer-2 scaling solutions like Polygon, Arbitrum and Optimism.
Buy ETH Now
Investors looking for a better longer-term bet should probably consider tokens such as these. But investors might also want to diversify their holdings with some presale tokens that have a great risk-reward – indeed, whilst presales are risky (as all crypto is), crypto investors that have historically secured the best returns are those who got in early on a presale. We’ve reviewed some of the best candidates in this list of the top 15 cryptocurrencies for 2023, as analyzed by the Cryptonews Industry Talk team.
The list is updated weekly with new altcoins and ICO projects.
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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