The Terra Classic or Terra USD markets have been highly volatile in recent months, leading many to question the future of both currencies. With the unpredictable nature of the crypto market, it can be difficult to predict the price of any money. In this blog post, we look at the current state of the Terra Classic or Terra USD markets and make a Terra USD price prediction for the near future.
We also have price predictions for AMP Crypto if you are interested in other crypto forecasts as well!
What Is the Price Prediction Terra Classic USD?
Our Terra Classic forecast anticipates a value of $0.000584 by the end of 2024, representing a 258.33% increase from current levels. One should keep Terra Classic because the present market sentiment is Neutral, and the Worry & Greed Index rating of 15.44 suggests severe worry. Several technical analysis indicators hint at positive indications as of December 28th, 2022, while other indicators forecast negative signals, reflecting a generally Neutral stance among Terra Classic projections.
Our data shows Terra Classic’s value has climbed by 1.84% in the past 30 days. This might be good news for the economy in the coming months. One Terra Classic token was worth $0.0001 at the end of December, a 22.34% rise over its November value. The fear and greed index shows strong dread at 15.44, indicating things are neutral. Terra Classic could be a better bet.
When the Terra Classic price falls below the 50-day simple moving average, a SELL signal is issued (SMA). Looking further back, the SMA gave a holding signal for Terra Classic on December 31, 2022.
The price is predicted to fall to $67.94 by the end of December, from its present level above the 200-day Simple Moving Average (SMA). Terra Classic’s 50-day simple moving average is expected to hit $93.65 by the end of 2023.
The Relative Strength Index (RSI), a momentum indicator, can be used to identify an overbought (above 70) or oversold (below 30) cryptocurrency (30). The LUNC market’s Relative Strength Index (RSI) is now at RSIValue, indicating neutrality.
TerraUSD is no longer a stablecoin, and forecasting its future value is unlikely to be fruitful.
Because predicting algorithms are not perfect, whether the price of USTC in 2022, 2025 or 2030 is forecasted to be $1, USTC is still intended to function as a stablecoin. Certain websites contest this.
To put this into context, CryptoPredictions predicts that it will reach $0.061 by December 2026 and $0.059 by the end of 2022.
According to Gov. capital, the value of USTC will be so low by August 10, 2022, that it cannot be defined. On the other hand, the site predicts an increase to more than $1 by July 6, 2023.
CoinArbitrageBot, one of the most bullish cryptocurrencies predicting systems, predicts that USTC will reach $0.10 this year and stay there until at least 2025.
Terra Luna Classic: A Brief History
Beginning in early May 2022, LUNA and UST fell precipitously, wiping out more than $60 billion in cryptocurrency marketplaces. Compared to its all-time high of $116, the current price of $LUNA (just $0.0001427) is a steal.
According to the New York Times, Sam Bankman-Fried may have been behind the attack by manipulating the market. Investigations are now underway. Between May 3rd and May 12th, 2022, $LUNA plummeted to an all-time low of $0.00004779 in a matter of days.
The bitcoin markets were influenced, while the specifics of what happened and why remain unknown.
Daniel Shin and Do Kwon, two crypto entrepreneurs, established the Terra Classic blockchain in 2019, originally known as Terra (LUNA) and signified by the ticker symbol LUNC. TerraUSD, its stablecoin, was created with the support of Terra Classic, its native token (UST). By having the money destroyed, a new UST was issued in exchange for LUNA.
When the price of a UST exceeded $1, the market destroyed LUNA, and more UST was manufactured, causing the currency’s value to decrease. If the UST price fell below $1, LUNA was swapped for UST, increasing the value of UST.
The system regularly worked until May 2022, when UST broke free of its $1 peg, and the price of LUNA plummeted, resulting in a massive outflow of cash from the TerraUSD economy.
When UST lost its USD peg on May 9th, 2022, investors who had previously been tempted by the approximately 20% returns on UST deposits began a frantic sell-off of their tokens. Consequently, while being designed to help maintain UST’s USD peg, LUNA experienced hyperinflation as token holders liquidated their holdings.
Terra Luna Burn
The LUNC community has been rallying for a supply burn to increase the price of their cryptocurrency. With virtually everyone in agreement, the community passed proposals 3568 and 4159, which introduced a 1.2% tax burn for all on-chain transactions of LUNC on the Terra Classic network.
However, shortly after, the community changed its mind and approved proposal 5234, which reduced the 1.2% tax burn to 0.2%. Edward Kim, who contributed to the 1.2% tax burn proposal, outlined the benefits of lowering the tax burn to 0.2% on his Medium blog.
The LUNC community wasn’t the only one calling for a supply burn. Centralised cryptocurrency exchanges (CEXs), like Binance, supported burning the LUNC supply. This led to other large CEXs following suit and agreeing to participate in the supply burn.
The reduced tax burn comes with a few benefits for the LUNC community. For starters, there will be more coins in circulation, which increases liquidity and the number of transactions that can be made. It also adds to the scarcity of coins, which is essential for any cryptocurrency.
The reduced tax burn also incentivises miners and stakers to continue mining and staking, which helps to secure the network. This benefits the network, as it increases the strength of the blockchain and keeps the transaction fees low.
The LUNC community is excited about this new supply burn agreement as it is a huge step towards increasing the token’s price. Not only is the community working together to reduce the supply, but they are also leveraging the power of CEXs to further aid in the burn. With the reduced tax burn and increased liquidity, the LUNC community is hopeful that this will be the first step to seeing gains in the price of the token.
Is It Wise to Invest in LUNC?
The LUNC community has been relentlessly trying to reduce the token supply and maintain its value in their minds. This is a sign of the bright prospects of the coin. The technical front of the coin has also shown an increase in its buying edge, with the bulls trying to aim for the $0.000292 hurdle to achieve better targets.
Some risks are associated with investing in a coin that has been through a major mishap. If the coin is subjected to pump-and-dump schemes, the price could plummet. Investors must keep track of the percentage of LUNC staked and the total number of tokens burned. One could reinforce the current bullish bias if these numbers continue to rise.
The LUNC project has already shown an increased portfolio value and has the potential to reach new highs soon. The community has also ensured that the tokens are distributed equitably. This has helped maintain the coin’s value and prevent any market manipulation.
The LUNC project also has a decentralised governance system in place. This system aims to ensure that the project remains decentralised and that the community has the power to decide how the project should move forward. This ensures that the project remains in the hands of the people and that any single entity does not control the project.
Disclaimer: This post’s cryptocurrency price predictions and analyses are for educational purposes, not financial advice. Cryptocurrency prices are unpredictable and inconsistent. Past achievement doesn’t guarantee future success. Before investing, you should study and contact a qualified financial adviser. We are not accountable for any losses caused while using or depending on this information.
The LUNC project has a bright future ahead of it. With its decentralised governance system, reduced token supply, and increasing buying edge, the coin has the potential to reach new highs soon. Investors should be aware of the risks associated with investing in a project that has been through a major mishap. Therefore, investors need to monitor the percentage of LUNC staked and the total number of tokens burned. The current bullish bias could be strengthened if these numbers keep going up.