Why the Price of Terra Luna Classic Skyrockets

The price of Terra Luna Classic has been on an upward trend in recent months as demand for the coin has skyrocketed. LUNC reached a high of $0.00044, which was the all-time high after the Terra crash in May.

Since its all-time low, the coin has increased by more than 750%. This gives this cryptocurrency a market capitalization of over $2.47 billion.

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Why is the price of LUNC increasing so much?

Terra Luna Classic is a remnant of what was left after the decoupling of the Terra USD (UST) stablecoin in May. Developers abandoned the original project and launched Terra 2.0, whose native token is known as LUNA.

In recent weeks, LUNC, LUNA, and Terra Classic USD have made a big comeback as investors seize the buying opportunity. Moreover, FOMO is setting in – Fear of missing out or the fear of missing out.

The price of the Terra USD stablecoin has also performed surprisingly well. It has grown from $0.0060 in June to $0.041, an increase of more than 600%. There are probably still many investors hoping that the coin could regain its peg to the US dollar. On the other hand, LUNA’s price has almost doubled since its low in May.

There are three main reasons for the surge in Terra Luna Classic. First, investors seem to be increasingly interested in “fallen angels.” Fallen angels are financial assets that were once highly sought after but lost their value over time.

For example, the price of the CEL token has risen more than 1,600% since its low in June, even though Celsius Network has filed for bankruptcy. Similarly, the VGX price has risen 510% from its year-to-date low, regardless of the fact that Voyager Digital has long since filed for bankruptcy.

The same situation had been seen in the stock market when shares of companies like Hertz and Revlon skyrocketed after bankruptcy.

But there are undoubtedly still many investors who believe that Luna Classic will make it back to the top of the crypto industry, and they are also contributing to the current price increase.

Terra Luna Classic Price Forecast

The daily chart shows that the LUNC price has been in a strong uptrend in recent weeks. During the recent rally, the coin managed to overcome the important resistance at $0.0001655, which was the highest price in June.

Terra Luna Classic has moved above the moving averages of the last 25 and 50 days, as well as the Ichimoku cloud. Therefore, the cryptocurrency is likely to continue to rise as the bulls target the next important resistance level at $0.00050.

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(Featured image by sergeitokmakov via Pixabay)

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First published in CRYPTO MONDAY, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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