Terra Classic (LUNC) coin was unable to halt its previous long downward rally and fell precipitously around the $0.000221 mark. Terra Classic is one of the few major cryptocurrencies that did not gain popularity in the previous month.
However, the reason for its recent downward rally could be attributed to the recent filing of another court case against Do Kwon, the co-founder of Terraform Labs.
Another factor that could prevent Terra Luna from gaining traction is the meeting of the Federal Open Meeting Committee, which announced another rate hike of 75 basis points, reducing investor confidence in risky assets such as cryptocurrencies. .
Meanwhile, the collapse of multiple platforms over the past year has been seen as another major factor that has kept the Terra Luna coin down, and regulators are currently tightening their grip on the tech sector. cryptocurrency accordingly.
On the other hand, the positive crypto market, supported by a combination of factors, was seen as one of the key factors that could help the Terra Luna coin limit its further losses.
Pricing and Tokenomics of Terra Luna Classic
The current price of Terra Classic is $0.000221 with a 24-hour trading volume of $314 million. Terra Classic has fallen over 8% in the past 24 hours.
Terra is now ranked #36 in the market, with a real-time market cap of $1.4 billion. The total number of LUNC coins in circulation is 6,590,540,703,117.
Three Reasons Behind Terra Classic (LUNC) Losses
There are a few important factors that could be tied to the ongoing bearish rally in LUNC. One of those reasons is the ongoing legal action against Do Kwon, the co-founder of Terraform Labs. Kwon is now being sued in Singapore in a $57 million class action lawsuit.
According to the complaint, the stablecoin TerraUSD (UST) failed to maintain its 1:1 peg as a store of value after the stablecoin collapsed in May.
Other than that, the reason for the bearish rally could be related to the fact that regulators are currently taking tougher action against the crypto market, which has caused several platforms to fail over the past year. .
Cryptocurrency market rebound
Since the start of the day, the cryptocurrency market has turned green as the largest and most popular cryptocurrencies in the world, Bitcoin (BTC) and Ethereum (ETH), have both managed to see marginal price increases over the past day, remaining steady at $20,000 and $1,500, respectively.
Other well-known cryptocurrencies, such as Litecoin (LTC) and Ripple (XRP), saw modest gains. As a result, the positive market has had little impact on Terra Classic’s price so far.
However, since the release of the US Federal Reserve’s rate hike decision, Terra and the rest of the cryptocurrency market have seen a bearish correction.
Terra Luna Classic price drops to $0
Technically, the LUNC/USD pair has been rejected below the $0.000278 level, which is extended by a declining trendline. At the same time, Terra Luna is weighed down by the 50-day moving average.
Immediate support for Terra Luna is at $0.000192, and a break down could expose it to the $0.000127 level. Terra closed bearish engulfing candles on the daily time frame indicating the possibility of a continuation of the selling trend.
Therefore, you should look for sell positions below $0.000278. Terra Luna Classic may not end at zero, but it certainly struggles to maintain its momentum.
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