On Wednesday, LUNC is declining along with pessimistic flows that are permeating the cryptocurrency industry.
The Terra blockchain that experienced a massive failure in spring 2021 after the UST technical stable-coin lost its 1:1 linkage to USD, is represented by the native token LUNC.
Prediction of LUNC’s price
The most recent decrease in LUNC is a break-down of the rising trend that has been driving the price changes since the lows of around 0.0001350 USD, which were hit in November after FTX catastrophe.
Price predictions have therefore become more and more pessimistic.
Additionally, the most recent decrease also occurs at the same time that LUNC is running into resistance at a longer-term decline from its September peaks in the neighborhood of 0.00059 USD.
LUNC’s value has declined by over 70% since these peaks, and further losses are unavoidable as bears strive for a repeat of the November lows.
If the price dropped below these lows, the next support part in the mid-0.00011 USDs would be struck.
Following Fed Chair Jerome Powell’s aggressive remarks on Wednesday, which investors read as resistance against the notion that the Central Bank (CB) will be stopping rate rises or attempting to reverse them any time soon, the crypto markets are expected to be affected until the end of the year.
In fact, Powell’s strong posture seems to have been adopted on purpose to cause a melt-up spike in stock markets via the end of the year, which might stimulate the economy and make the Fed’s fight against inflation more difficult.
Due to cryptocurrency’s tight relationship to stocks and Powell’s decision, any possible cryptocurrency “Santa rally” that may have been in the works after Tuesday’s weaker-than-expected USA CPI data has essentially been put to rest.
The world’s biggest economy is edging closer to a downturn in 2023, so, investors are asking how conceivably the Fed can maintain its aggressive posture as indicators of the USA economy’s health worsen, inflation declines more swiftly than expected, and other factors.
When the expected dovish move takes place, which might take some time, cryptos should climb.