Terra Classic Plunges Amidst Market Dip; Analysts Anticipate Upturn

Amidst a broader market downturn, Terra Classic (LUNC) has shed 15% since its weekly high on Mar. 31, with the industry losing $170 billion in the last five days. Despite the dip, LUNC remains above the 200-day EMA and an ascending support trendline, suggesting a potential bounceback in the coming days.

Terra Classic (LUNC) Plunges Amid Market Sell-Off, but Analysts Foresee Potential Rebound

New York, United States - Terra Classic (LUNC), the cryptocurrency associated with the collapsed Terra ecosystem, has witnessed a significant decline over the past week, shedding over 15% of its value amidst a broader market sell-off. The sell-off has erased over $170 billion from the total cryptocurrency market capitalization in just five days.

Despite the sharp downturn, LUNC has managed to maintain its position above its 200-day exponential moving average (EMA) and has found support from an ascending support trendline. Analysts believe that these technical indicators suggest the possibility of a bounceback in the coming days.

At press time, LUNC is trading at $0.0001356, representing a 3% drop on the day and a 15.89% decline from its weekly high of $0.0001611 set on March 31. The cryptocurrency's market capitalization has dwindled to $788 million, pushing it outside the top 100 cryptocurrencies by value.

Technical Analysis Hints at Potential Recovery

Analysts point to LUNC's position above its 200-day EMA and the ascending support trendline as potential catalysts for a reversal in the downward trend. Every time the price has tested this support in the past, the token has demonstrated resilience and has recovered.

Additionally, LUNC has been trading within a triangular pattern, which is often associated with consolidation and potential breakout opportunities. A surge that breaches the upper trendline of this pattern could provide significant gains for long-term holders.

Binance Burn and Do Kwon Trial Updates

Beyond technical analysis, Terra Classic has garnered attention for two other events this week. Binance, the world's largest cryptocurrency exchange, incinerated 4.17 billion LUNC tokens in its latest burn program aimed at reducing the supply and enhancing the token's value.

Since its inception, Binance has burned over 56 billion LUNC tokens, underscoring its commitment to the Terra Classic community. However, despite these efforts, LUNC's circulating supply remains substantial, currently estimated at 5.82 trillion tokens.

The other notable development is the ongoing legal proceedings involving Do Kwon, the co-founder of the Terra ecosystem. Lawyers representing Kwon are slated to present their closing arguments to the jury today, April 5. Kwon remains in custody in Montenegro as the United States and South Korea continue to negotiate his extradition.