Tobias Andersen, a former Terra Classic layer-1 team member and senior software developer, thinks that LUNC may revisit its historical low if the ongoing selling pressure that is adversely affecting the market leads Bitcoin (BTC) to plummet to the $22,500 price level.
Andersen, commonly known as “Zaradar,” expressed this view in a tweet highlighting the increasing worry surrounding the present price fluctuations of Bitcoin.
Zaradar’s observations were prompted by a sudden increase in the value of BTC, which was shortly followed by a massive 5% decline within an hour. Ultimately, the cryptocurrency fell to a low of $26,777, which was the lowest it had been in seven weeks. The developer highlighted that these false signals adversely impact other assets.
To provide context, a fakeout occurs when an asset signals a false price breakout, resulting in an abrupt reversal of price, which can cause traders to incur losses.
Related article: Terra Classic Keeps Dropping; Down 17% in the Past Week
According to Material Indicators, a cryptocurrency analytics account, BTC faced considerable selling pressure during the current week. Yesterday, an unknown wallet sent out a massive 9,800 BTC, which raised concerns among observers. While the wallet was previously attributed to the US government, those claims have been proven false.
Zaradar predicted that Bitcoin’s price would drop even further if the selling pressure continued. He suggested that the market could fall back to the mid-March lows of around $22,500. If this happens, he believes that LUNC could retest its all-time low, and Terra (LUNA) could plummet to $0.50.
LUNC Has Increased by 10% in 2 Days
It is worth noting that LUNC’s lowest price ever recorded is $0.00001675, a value that it hit following the Terra crash in May last year. Currently, LUNC is trading at $0.0000901. If it falls to $0.00001675, it would represent a significant 81% decline from its current price.
As of now, LUNC has experienced a 6.10% decrease in value within the last 24 hours. However, it is worth noting that LUNC defied the general market trend the day before, closing the day with a 4.27% increase despite BTC and other assets seeing a decline. LUNC has risen by 10% in the past two days, despite BTC experiencing a loss in the previous five days.