Terra Luna Classic (LUNC), the cryptocurrency that powers the original Terra blockchain that faced disaster last May, has been outperforming the broader cryptocurrency market in the last seven days, rising more than 5.0% during this time.
By contrast, Bitcoin (BTC) is down close to 2% and Ether (ETH) is down around 3% over the same time period.
LUNC was last trading just above $0.00006 per token, just to the north of its 21DMA at $0.0000595, though is still stuck below its 50DMA at $0.000064.
The cryptocurrency is likely outperforming the broader market because of a recent vote by the Terra Classic community to halt all minting of new LUNC tokens.
LUNC lost nearly all of its value last May when the Terra Classic blockchain’s associated algorithmic stablecoin UST lost its 1:1 peg to the US dollar, triggering a $28 billion Decentralized Finance (DeFi) capital flight from the ecosystem.
Still, Terra Classic loyalists hope to revive the ecosystem, and a key part of that plan is to reduce the number of tokens and raise LUNC’s value once again.
LUNC remains 90% lower versus its highs from last September.
While LUNC has done well in recent weeks despite broader market underperformance, it remains stuck in a long-term downtrend, meaning price predictions remain pessimistic.
Indeed, the cryptocurrency has been stuck in a downward trend channel since its peak last September, and has continually found resistance at its key moving averages (like the 21, 50 and 100DMAs).
An eventual retest of the all-time lows hit last June in the $0.00003s remains a distinct possibility, despite the best efforts of the Terra Classic community to boost the cryptocurrency’s value proposition.
A near-term spike to the $0.00007/8 area is possible, but manyRead more on cryptonews.com