Luna Classic Faces Strong Resistance At This Level – Can Bulls Barrel Through?

Altcoins in the crypto space have been experiencing a lot of volatility lately as the major cryptocurrencies Bitcoin and Ethereum face resistance that hinders their growth. Luna Classic, revival attempt of the Terra Luna ecosystem, is one of those tokens that suffer losses in the short term.

In accordance with CoinGeckothe token has depreciated by 4% during the day, which may be a sign that the situation for investors may become more bleak.

The native coin of the old network, formerly known as Terra Classic, is now known as Luna Classic (LUNC). Released on May 28 last year, it followed the creation of the genesis block in the new chain that emerged from the fork.

LUNC, formerly known as LUNA, is a stablecoin that serves the same purpose as the original Terra Luna coin and supports the value of the Terra Classic stablecoin, TerraUSD (UST).

Positive changes contradict bears

The Twitter space for LUNC has been particularly upbeat lately. KuCoin, one of the largest exchanges on the market, recently has entered the Luna Classic network as a validator. This is a complete change in mood in Luna Classic.

Due to the mass placement of KuCoin on the LUNC network has reached almost 14% of the total supply. This may signal a positive mood around the ecosystem. Santiment notes the strong developmental force behind the LUNC bulls.

Since October 2022, the ecosystem has been actively developing, peaking last month on January 15th.

STU, Terra Luna stablecoins due to which the crypto industry has lost billions, is also planned re-attached up to 1 dollar. If this stablecoin repeg is successful, it could help boost LUNC’s optimism. burning The token should also give a boost, as about 40 billion LUNCs were burned.

Chart: TradingView

Rejection at $0.000 reduces LUNC

Bearish or not, the current token failure has certainly affected LUNC’s ability to break through the current resistance level at $0.00020916. However, the token’s support at $0.00016897 could persist even if the bearish momentum continues.

For the token to continue rising, LUNC needs to close above the $0.00016897 support as a break of this support could see the token back to $0.00015115. Investors and traders should also keep an eye on the correlation of the token with the major cryptocurrencies.

LUNC total market cap at $1 billion on the daily chart | Chart:

At the time of writing, it has a strong correlation with Ethereum, which has now entered a period of consolidation above $1.6k. If the ETH bears break through this support, we could see LUNC follow the leading altcoin.

LUNC bulls should be on the lookout for internal and external developments as this can either instill confidence or induce skepticism about the price movement of the token.

For now, investors and traders should focus on solidifying the current support for the token, with a possible target above $0.00020916. But LUNC bulls should brace for short to medium term losses as the token could decline in the coming days.

– Featured Image by Telegaon

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