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LUNC Why It Keeps Falling and Struggles to Recover

Terra Luna Classic (LUNC) has faced persistent downward pressure since the 2022 collapse of the Terra ecosystem. The loss of UST’s dollar peg triggered hyperinflation of the original LUNA token, erasing market confidence and leaving a legacy of distrust that still weighs heavily today.

The 2022 Meltdown

When UST lost its peg, a massive sell-off and token issuance spiral followed. The blockchain was temporarily halted, investors suffered devastating losses, and algorithmic stablecoins came under intense regulatory scrutiny. This event reshaped LUNC’s narrative, making recovery a challenge.

Supply and Burns: Limited Impact

Even with ongoing token burn programs, circulating supply remains in the trillions, diluting value and keeping price appreciation in check. Hundreds of billions of LUNC have been burned, but these measures have yet to deliver a meaningful structural shift.

Technical Signals and Market Flow

From a technical standpoint, LUNC has repeatedly traded below key moving averages, with bearish formations such as death crosses reappearing in market cycles. Trading volumes remain inconsistent, and the asset stays far from major resistance levels.

Governance, Reputation, and Legal Overhang

Uncertainty surrounding the former Terraform Labs and co-founder Do Kwon continues to cast a shadow. Legal disputes and regulatory actions keep investor sentiment cautious, limiting the likelihood of any sustained bullish breakout.

What This Means for Holders

With no strong utility case, excessive supply, and a lingering reputational hit from the collapse, the probability of sustained price growth remains low unless significant adoption, structural supply cuts, and macro catalysts emerge.

A Strategic Alternative: P2P SWAP LUNC → XSTP

For many LUNC holders, the prolonged lack of price recovery has become a source of frustration. StartUpX introduces a strategic alternative through its P2P swap program, enabling holders to exchange LUNC for XSTP while receiving an additional 20 percent allocation on the swapped value. This approach transforms dormant capital into a position within an actively expanding blockchain ecosystem, offering real utility, diversified applications and stronger long-term growth potential.

Source: Binance, CoinGape, Mitrade, The Coin Republic, FXStreet, Cryptonomist, Token Metrics, AInvest, Wikipedia

Team XSTP

Writer & Blogger

1 Comment

  • Ellen s. Cortez

    Eu comprei o projeto na primeira fase e continuarei comprando na segunda. StartUpx é sem dúvida o projeto mais transparente atualmente e sempre entregando tudo o que está descrito no roadmap. Esse sim vale a pena! Estou no aguardo do lançamento da carteira no Android 🚀🔥💯

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Disclaimer: Cryptocurrencies may not be regulated in your jurisdiction. The value of cryptocurrencies can fluctuate. Profits may be subject to capital gains or other applicable taxes in your jurisdiction. ©2025 StartupX Tecnology LLC | All Rights Reserved