The drop in the cryptocurrency market last Friday because of worries about Silvergate Bank had a big effect on Luna Classic (LUNC), which is the currency that runs the original, but mostly defunct, Terra blockchain ecosystem.
The cryptocurrency dropped more than 10% on Friday, from around $0.00017 to around $0.00015. Since then, it has gone down a little more and is now stable in the mid-$0.00014s.
Price Prediction – Where Next for LUNC?
What used to be a key area of support around $0.0001550 is now a key area of resistance. Traders are also keeping an eye on a support level just under $0.00014, which is low from late 2022.
As the cryptocurrency market as a whole stabilizes before a busy week of macro events, such as a flood of important US jobs data and a speech by Fed Chair Jerome Powell to the US Congress, LUNC bulls will be hoping that the cryptocurrency can continue to find support above this level, as it did last Friday.
If this area of support breaks, a retest of the lows from late 2022 in the $0.000127 area would be very likely. That would be a huge 40% drop since 2023 when LUNC was worth around $0.00021.
Singapore Opens Investigation into Terraform Labs
Reports in the crypto media on Monday say that Singaporean authorities are looking into Terraform Labs, the company that created the Terra blockchain.
Terraform Labs used to be based in Singapore, which is also where the blockchain’s creator, Do Kwon, lived for a long time. South Korean police are looking for Do Kwon, who is from South Korea. At the moment, it is thought that he is hiding out in Serbia. Do Kwon is wanted for his part in the spectacular collapse of the Terra blockchain ecosystem last May? This happened when algorithmic stablecoin UST lost its peg to the US dollar, causing a hyperinflationary spiral in LUNC and wiping out $40 billion in the Decentralized Finance (DeFi) ecosystem, which is still being felt today.
Do Kwon and Terraform Labs have been accused of fraud by the US Securities and Exchange Commission? Kwon is also accused of laundering more than $100 million in Bitcoin that he stole from the Luna Foundation Guard.
LUNC Alternatives to Consider
As a cryptocurrency, LUNC has, at best shaky long-term prospects. The collapse of the Terra ecosystem last year hurt developers and supporters of Terra a lot, and the damaged ecosystem has a small chance of catching up to ecosystems that are doing well and growing quickly, like Ethereum and its many growing layer-2 scaling solutions like Polygon, Arbitrum, and Optimism.
Investors looking for better, shorter-term coins might want to diversify their holdings with some presale tokens that have a good risk-to-reward ratio. In fact, even though presales are risky (as is all crypto), investors who got in early on a presale have historically made the most money. The Cryptonews Industry Talk team looked at the top 15 cryptocurrencies for 2023 and put together the list below.
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