The Rise and Fall of Terra Luna Classic (LUNC) in the Crypto Market
On August 10, Terra Luna Classic (LUNC) experienced a significant price increase of 23.3%, reaching the mid-range price with a surge in trading volume. However, technical indicators such as OBV and DMI did not show strong buying momentum, creating a mixed trend outlook. The RSI soared above 60, signaling volatility and bearish sentiment among investors.
The Impact of a Vulnerability Exploitation on Terra’s Price
Just ten days after the exposure of a vulnerability on the Cosmos chain, malicious actors exploited it to withdraw around $4 million without authorization, impacting Terra’s price. Following an upgrade to the blockchain on August 8, the price of Terra surged from its recent lows to $0.000087. However, the market witnessed a decrease in buying pressure, resulting in a 6.86% decline in the token price since August 12.
An Uncertain Future for Luna Classic (LUNC)
The LUNC token has faced high volatility in the past 72 hours, with more short sellers than long buyers. This downward trend, coupled with whale selling and liquidations, has created a bearish sentiment in the market. The 14-day RSI for Luna Classic stands at 60.69, indicating an overbought condition. However, further declines could trigger more liquidations, reinforcing the bearish outlook.
In the coming months, Luna Classic will be closely monitored to see if measures are taken to address high inflation. Failure to address these issues could lead to a stagnation or reversal in valuation. While speculative rallies are possible, the overall market direction appears fragile. Caution is advised as external factors like market manipulation could continue to impact the coin’s volatility.
