A widely-followed cryptocurrency trader and analyst has revealed they believe that the price of Terra Classic ($LUNC) is set to “nuke to hades eventually” while predicting a short-term rally in the near future.
According to the pseudonymous cryptocurrency analyst Altcoin Sherpa, Terra Classic isn’t a position he would take for the long-term, although he sees a potential longing opportunity once the cryptocurrency’s price hits key Fibonacci retracement levels at 50% and 61.9%.
Fibonacci retracements levels stem from the famous Fibonacci sequence and are represented through horizontal lines indicating support and resistance areas. Each level is associated with a percentage, with every level being 23.6%, 38.2%, 61.8%, and 78.6%. 50% is less commonly used.
Terra Classic is the rebranded version of the original Terra ecosystem, which collapsed earlier this year. As CryptoGlobe reported, a popular cryptocurrency whale known as Gigantic Rebirth on the microblogging platform Twitter has revealed a massive bet of around $8 million against $LUNC.
The announcement referenced a second time GCR has done this, as the trader is well-known in the cryptocurrency community for shorting Terra before the collapse, at the time making a bet with Terra’s founder Do Kwon himself that the price of its $LUNA token would drop below the $92 line within a year. At stake were $10 million.
The Terra ecosystem later collapsed and the cryptocurrency’s original blockchain was rebranded to Terra Classic, while a forked version of it kept the Terra name and moved on with a part of the community.
When Terra’s ecosystem collapsed, its circulating supply jumped from 340 million tokens to 6.9 trillion, and to combat the inflation $LUNC supporters have added a 1.2& tax burn on all transactions conducted on the network. Terra Classic’s price surged earlier this month after leading exchange Binance announced it will implement the burn mechanism to burn all trading fees on $LUNC spot and margin trading pairs.
Crypto exchange Bitrue has also recently announced support for the burn, noting deposits will arrive at Bitrue after the 1.2% tax, and that withdrawals will be affected by it as well.
Adam O’Neill, Bitrue’s CMO, told CryptoGlobe:
We at Bitrue are very happy to see that the LUNC community remains fiercely active even with such a storied and difficult history behind them. We will continue to support community initiatives like this that demonstrate the decentralized and democratized nature of cryptocurrencies.
Terra Classic is at the time of writing trading at $0.00027 per token after surging more than 120% over the last months, partly thanks to the community’s response to exchanges supporting the burn.
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