In the wake of recent crypto market uncertainties, the Terra Classic Price’s decline trajectory changed downwards, staying over the natural level of $0.0001. This support matches with the 78.6% Fibonacci Retracement level, which reinforces the creation of a bearish extension known as a flag. A recent fall apart of this flag pattern could boost market pressure to sell. Will the LUNC price crash to $0 in 2024? Let’s take a look at this Terra Luna Classic price prediction article in more detail.
What is Terra Crypto?
Terra is a decentralized, stablecoin-based payment network to facilitate rapid and low-cost transactions between numerous blockchains. The network’s basic currency is a series of stablecoins, each tied to a distinct fiat currency. The most well-known stablecoin in the Terra family is TerraUSD (UST), which is tied to the US dollar.
Why did Terra Crypto Crash?
Terra Classic went through a big drop recently. Its value went down by almost two-thirds from December 2023. Because of this, LUNC is no longer in the top 100 cryptocurrencies by market value and is now considered one of the smaller ones.
As of January 24, LUNC has a market value of $541,534,427, and its current trading price is $0.0000935. This is a significant decrease of more than $200 million in just one week. On January 16, the token had a market value of more than $726 million, according to CoinMarketCap.
One of the reasons behind this massive drop is that the Terraform Labs, the company behind TerraUSD, has officially filed for Chapter 11 bankruptcy in the United States. This information comes from court documents that were disclosed on a Sunday. The firm, headquartered in Singapore, submitted the bankruptcy filing in Delaware. In the filing, Terraform Labs mentioned having assets and liabilities in the range of $100 million to $500 million.
The recent news about Terraform Labs filing for Chapter 11 bankruptcy may have had an impact on the Terra Classic ecosystem and could be affecting the confidence of LUNC investors. The broader cryptocurrency market is also going through a decline, and this is likely putting additional pressure on LUNC, making the situation even more challenging due to the bankruptcy filings by Terraform Labs.
Apart from this, there are reports that the crypto exchange Crypto.com has delisted the LUNC and because of this the LUNC price is dropping. At the time of writing this LUNC price has decreased by almost 25% in the last seven days and 5% in the last 24 hours.
Terra Luna Classic price prediction: Will LUNC Price crash to $0 in 2024?
When a token price falls to zero dollars, it implies that the project is no longer functioning. Following the Terra affair, a lot of work was put into starting over, creating the new LUNA token. However, given current market conditions, it is becoming increasingly difficult to gain confidence, particularly in a failing cryptocurrency enterprise.
According to cryptocurrency specialists, Bitcoin might fall below $20,000 or lower. If this occurs, the whole cryptocurrency market, including Terra’s market capitalization, should follow suit. This indicates that LUNC’s current market capitalization, which is about $541,534,427, might fall dramatically. The worst-case scenario would be the complete collapse of Terra as a corporation, which is unlikely given that Terra is being used in projects.