With most of the assets on the cryptocurrency market still trading in a largely monotone manner, Terra Classic (LUNC) is going through some difficult times, recording losses on all of its charts, as well as the total value locked (TVL) on its blockchain dropping to the lowest levels since its launch.
That said, Finbold has analyzed the main factors that could lead the rebranded native token of the disgraced Terra (LUNA) ecosystem towards possibly overtaking the psychologically important level at $0.1, as its price levels prior to the collapse now seem like ancient history.
Large inflow of capital
As is the case with other cryptocurrencies, Terra Classic receiving an influx of capital in the form of a large investor or group of investors recognizing the potential in it and buying a significant amount of the LUNC digital asset could help drive its price up due to the laws of supply and demand.
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For now, the market capitalization of LUNC stands at $448.35 million, placing it at the 80th position among all crypto assets by this indicator, significantly below Bitcoin (BTC) at $573.64 billion, Ethereum (ETH) at $222.21 billion, XRP (XRP) at $33.17 billion, Dogecoin (DOGE) at $10.6 billion, Shiba Inu (SHIB) at $5.77 billion, or even Pepe (PEPE) at $484.1 million.
Ecosystem growth
If the Terra Classic team manages to find a way to attract more blockchain developers to build new projects, i.e., decentralized apps (dApps) on the LUNC network, it could attract more users and investors, increasing demand and triggering a price appreciation for its native crypto asset.
Other examples include the recent network upgrade supported by Binance, one of the largest crypto exchanges in the world, as well as the preparation of its team to shift focus on reducing the circulating supply of LUNC and stablecoin TerraClassic (USTC) through the restoration of the LUNC validator burning.
Lawsuit v. SEC
Another development to factor in the Terra Classic’s potential price increase is the success of the Terraform Labs representatives in the lawsuit that the United States Securities and Exchange Commission (SEC) filed against the company, alleging that the digital assets issued by it are securities.
On June 15, the firm’s representatives, along with its legal team, faced the SEC in court in Manhattan to prove otherwise. As evident from the SEC’s case against the blockchain company Ripple and the XRP token at its center, any positive news around the lawsuit could help its price go up.
Time
Taking into account that the price of LUNC has been declining for months, it is possible that it could eventually bottom out and start to recover, as all crypto assets tend to go through cycles of boom and bust. If this, indeed, happens, it could take quite some time for the price of Terra Classic to reach $0.1, although not entirely impossible.
However, it is important to remember that the crypto market can be very volatile and unpredictable, which means that anything could happen over time, and it is critical for all investors to do their own due diligence, carefully research the asset, and consider their risk tolerance before dedicating any significant amount of money to it.
Market sentiment
Lastly, it would be a mistake to understate the role that the sentiment on the wider crypto and macroeconomic stage could play on individual crypto assets such as Terra Classic, particularly the positive developments of a larger scale and news coverage on the sector as a whole.
Specifically, positive news about the crypto industry, in general, can assist in triggering the overall bullish sentiment in the market, and when people feel particularly bullish about digital assets, they are more likely to invest in them, which can also be the case for LUNC.
Terra Classic price analysis
Meanwhile, Terra Classic was at press time changing hands at the price of $0.000077, down 1.32% in the last 24 hours, as well as losing 2.53% to its value across the previous seven days, and dropping 7.01% on its monthly chart, according to the data on August 10.
Although it is impossible to say for sure when or if Terra Classic could actually overtake the price at $0.1, the above factors certainly have enough power to help in its strengthening and moving the needle in a more positive direction, eventually hitting the coveted price level.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
