Terra Classic (LUNC) from the past few weeks is in the green zone, with a cumulative seven-day price increase of 13%. With a great trading volume, LUNC has peaked by 323.66% in the last 24 hours, propelling its price to $0.00006508, representing an 8% gain amidst a broader passive crypto market. However, the altcoin’s relative strength index (RSI) indicates notable selling pressure, with levels consistently below 40 since mid-July.
Despite swings, experts and analysts are bearish on LUNC. What’s happening with LUNC Price?
LUNC to Reach $120?
As Bitcoin fell from $27,500, Terra Classic coin came under selling pressure. That created room for Rex “Rexyz” Harrison, who has raised important considerations about LUNC’s potential. Harrison casts doubt on the likelihood of LUNC reaching the ambitious target of $120, an all-time high for the token. He is quite sure that attaining a $1 price would necessitate substantial community efforts, laying focus on the chances of LUNC hitting $120 are exceedingly low.
Supporting the claims, On-chain data also reveals a surge in short-liquidation for LUNC, exceeding $20,000 recently. Additionally, LUNC’s Open Interest has increased by $1 million, indicating heightened trading activity. However, with the long-short ratio dropping to 0.67, a bearish correction appears probable.
It can only Reach the Target if?
In the meanwhile, Harrison outlines specific conditions for the community to achieve a $1 price for LUNC. He reasons that 99.9% of LUNC’s circulating supply, which currently stands at 5.8 trillion, must be eliminated through burning or staking. This casts doubt on Lunc’s rally to $1. But looking at Terra Classic’s market capitalization it would need to surge to $6.9 billion from the current $374.12 million. Harrison acknowledges that achieving a 90% reduction in circulation might be feasible through a combination of staking and burning, but this would still leave 690 billion LUNC tokens in circulation. The analyst believes the coin needs strong community support to break the resistance levels.
Does LUNC need a Swap System?
Furthermore, Harrison goes deep down and points out that such an outing could secure LUNC a $0.01 price, representing an astounding 15,269.87% growth from the current price. However, he notes that despite ongoing efforts, burning USTC tokens has made minimal progress in reducing the supply overhang. Additionally, burning LUNC itself has not significantly impacted the price.
As a potential solution to LUNC reduction, Harrison proposes the creation of a swap mechanism, like LUNC – USTC2. This could potentially address the challenges associated with supply reduction and price enhancement for Terra Classic.
