Should You Hold LUNC in Portfolio?

Terra Classic (LUNC) has been stuck in a price range for the last few months now. We will explore whether you should hold LUNC in your portfolio or not. We will look into recent developments in the ecosystem and try to project the next trajectory of the asset. Let’s get going!

Current Market Situation of LUNC

Terra Classic (LUNC) is doing pretty well in terms of price as the asset has added more than 8% over the last 24 hours. CoinMarketCap data reveals that the asset has gained more than 55% daily trading volume which helped it to reach 24 hours trading volume of almost $690 million. Terra crashed a few months ago, wiping out billions of dollars. It is hard to tell whether investors will be able to trust the coin again or not. The asset is down from its all-time high of $119. As of now, the asset is trading above $0.00030 with pretty good gains, but its ROI is down 100. 

CoinMarketCap

After having been confined for months, Terra Classic [LUNC] has recently been able to escape. While LUNC's recent success has provided investors hope for better times, a number of interesting things have been taking place in the neighborhood.

Despite the encouraging trends, a number of on-chain indicators have resisted a price increase and indicated the opposite. Let's take a look at what the LUNC network is truly doing. We will also analyze whether you should hold LUNC or not.

LUNC Has Released a Recovery Plan  

A new roadmap for Terra Classic has been developed, according to Terra Rebels, a Twitter account for Terra-related updates.

Twitter

The roadmap indicates that several major modifications that could drastically alter LUNC's future are scheduled for Q4 of 2022.

For example, developers intend to pause market swaps in the upcoming months and release a few additional ecosystem improvements – CosmWasm, Tendermint, and Vanila Cosmos. Additionally, in 2023, the Algorithmic Fungible Token will be pegged and additional capital constraints will be put in place.

Securing backing from Binance was another recent success for LUNC. Prior to crediting user accounts, the exchange stated that it will add consolidation costs of 1.2% to all deposits made on the platform.

Twitter

The LUNC community was delighted by this development because they had been waiting a long time for this kind of support. Despite these successes and the plans for the future, several on-chain measures did not support LUNC and suggested that there would be a drop in the following days.

What are Other Statistics Suggesting?

Although LUNC's price took a sideways path, its trading volume sharply decreased, which was a warning indicator. The blockchain's development activity was reduced despite the creators' announcement of a new roadmap.

It's interesting to note that LUNC's social volume likewise decreased from the previous week and followed a similar pattern. All of these factors suggested that rather than a price increase, investors should anticipate a decline in the price of LUNC.

Santiment

The Terra Classic (LUNC) Revival Roadmap, according to David Gokhshtein, former candidate for the US Congress and owner of Gokhshtein Media, is exciting. He has long been a LUNC detractor, but his attitude seems to be shifting as Terra Rebels, a group of volunteer developers, has released the official Terra Classic (LUNC) Revival Roadmap. The organization also wants to reestablish its independence from Do Kwon and Terraform Labs.

Let’s look at the technical indicators to understand whether to hold LUNC or not.

What’s Next?

LUNC's daily chart offered some encouragement because a few market indicators suggested that there might be a little uptick. For instance, the Exponential Moving Average (EMA) indicated a bullish signal when the 20-day EMA was higher than the 55-day EMA.

TradingView

However, both the Chaikin Money Flow and the Relative Strength Index (RSI) were in the neutral position (CMF). Additionally, the Moving Average Convergence Divergence (MACD) reading revealed a bearish crossover, reducing the likelihood of a short-term increase.

Strangely, the Bollinger Bands (BB) indicated that the price of LUNC was going to enter a constrained area, further reducing the likelihood of a northern breakout.