The collapse of the Terra ecosystem in 2022 has had a profound impact on crypto investors, resulting in significant losses and financial turmoil. Several well-known companies, including FTX, Alameda, 3CA, and Celsius, faced bankruptcy, leading to unprecedented levels of sell-offs in the cryptocurrency market. As a consequence, Bitcoin (BTC) breached its previous all-time high level but has since recovered and is approaching its peak once again.
Analysis of LUNA Coin
Terra faced hefty penalties and is set to pay a substantial sum to the US authorities. However, the origin of this payment remains contentious, considering the challenge of paying over $4 billion after the collapse of a $40 billion ecosystem. Currently, the price of LUNA Coin stands at $0.43, having dropped to $0.38 amid the decline in BTC's value.
After the collapse, LUNA Coin has been steadily decreasing and is hovering near the dip experienced after the distribution of new tokens. A potential upward momentum may be observed if it manages to reclaim the $0.548 support level, paving the way for new highs around $0.78 and $0.94.
In a speculative scenario, a peak around $1.2, witnessed at the start and end of March, appears feasible. The absence of a significant uptrend in BTC, currently priced at $62,000, may hinder a robust recovery. A positive move in BTC, potentially crossing $64,600, could indicate a more substantial price rise.
Prediction for LUNC Coin
LUNC Coin, once flourishing but now rendered valueless due to an increasing supply, lost the crucial support at $0.0000888. Its current trading price is $0.000081, with a possibility of testing the $0.0000712 support for further downward trends. Sustaining above this support is linked to BTC's performance, particularly its reversal above $58,500.
If LUNC can regain the $0.0000951 support, targets at $0.000128 and $0.000142 may come into play. In a speculative surge, a substantial spike above $0.000173 is conceivable, conditioned upon BTC's stability and a resurgence in investor risk appetite.
This news analysis sheds light on the repercussions of the Terra ecosystem collapse on the cryptocurrency landscape in 2022, emphasizing the challenges faced by investors amidst market turbulence.
