LUNC Reportedly Heading For Massive Dump, Price Chart 'Looking Ugly'

Terra Classic (LUNC) holders saw the crypto asset's price spike over the past few days, but it appears that the heydays would soon be over based on the latest forecast by a crypto analyst.

The Terra Classic community has had its fair share of heartbreak this year, which started when the algorithmic stablecoin TerraUSD (UST) depegged from the dollar. And, it looks like another bad news is heading its holders' way with the price forecasted to slump in the coming days.

A new tweet from the Twitter handle IncomeSharks, an account dedicated to cryptocurrency analysis, analyzed and shared their analysis of the 4-hour trading chart of Terra Classic on Thursday. They noted that the token appears like it is leaning toward reclaiming its past price lows as it continues to trade below the upward trendline.

The analyst also mentioned the on-balance volume of the Terra Classic, which according to them, is declining. "4h chart looking ugly. Declining OBV, ranging below diagonal, looks like it wants to reclaim lower levels after the big pump up," the tweet read.

This is quite sad news considering that Terra Classic holders enjoyed the 300% price spike in the early part of September, at a time when all other crypto assets were bleeding. The price rally took place after Terra Classic core developer Edward Kim submitted the 1.2% tax burn proposal that intends to reduce the overall circulating supply of the crypto asset. Before the historical crash, Terra Classic was trading at around $166.

The current price of LUNC erased over 40% gain holders saw in September. But that spike is still nothing compared to the crypto asset's price on April 6, when it traded at $116.13.

The historic collapse of the Terra ecosystem brought the crypto asset to its knees, which traded at virtually zero on May 13. Instead of finding solutions to help pull the price of the crypto asset, Do Kwon, the CEO and co-founder of Terraform Labs, introduced a new LUNA token.

He abandoned the community, which is now being taken care of by community members. As of 2:07 a.m. LUNC was trading up 2.27% at $0.0002866 with a 24-hour volume of $489,199,956, according to the latest data from CoinMarketCap.