Is Lunar Crypto Price Ripe for Recovery?
The recent advance in the Lunar crypto price has raised some salient questions among investors and HODLers alike:
• Is this a proper recovery, or is it a bull trap?
• Can Lunar crypto price ever get back to its October 2022 listing high?
• Is there a potential to invest in Lunar now?
This article sheds light on what has happened with Lunar so that you can find answers to these questions yourself.
What has been happening with Lunar?
The first thing to mention is that Lunar has moved to a new contract address. So, if you have yet to migrate and are worried you have lost your coins, you may check here for the new contract address, as there was an official announcement.
Lunar is primarily paired with wBNB on decentralized exchanges. However, it also pairs with the US dollar on the MEXC exchange. The price moves on the LNR/USDT pair on the MEXC exchange indicate that after hitting its all-time highs on the listing date in October 2022, the pair was hit by the crypto winter. Despite its recent attempts at recovery, it is still 80% below its listing highs.
So you can understand the questions from HODLers who are worried about whether there is any chance of LNR/USDT regaining those highs.
One thing is for sure; recovery (if any) will be a prolonged process. Here are some reasons that will play into this line of thinking.
First, we need to understand why Bitcoin and some cryptos did nothing but drop like a rock in 2022 and why they have shown some level of price appreciation in 2023. While the onset of the Omicron variant of COVID-19 was the fundamental trigger for the selloff that began in November 2021, the fundamentals pushing the crypto market have since changed as Omicron has not produced any dramatic worsening of the pandemic as once feared. So it is no longer an issue.
What has been driving the markets is the anticipation of the direction of monetary policy by central banks, chiefly the US Federal Reserve.
The Fed commenced an aggressive rate-tightening cycle in May 2022, making US dollar-denominated assets more attractive and sending investment money out of risky assets such as cryptocurrencies. This factor was what drove crypto prices lower in 2022. Following several rounds of rate hikes, the Fed has started to slow down on its tightening cycle, allowing some of this money to return to the crypto market. There is on-chain evidence to this effect, with data from Whalealert showing that a lot of whale money poured into the crypto market in February 2023.
The recent bounce in crypto prices has served Lunar well, allowing it to push off its January 2023 lows. The much-awaited judgement in the SEC vs. Ripple lawsuit could also significantly impact the crypto market and on altcoins such as Lunar in the short term.
Watch out for Lunar’s presentation at the London Blockchain Summit Following the 10 October, 2022, spike that led to an 800% rise in the Lunar crypto price, the token has since shed off some of that value.
However, there appears to be a slight resurgence in the price action.
There is still a long way before the price can recover to the highs of 10 October, but Lunar has much potential, and the current prices may present an exciting opportunity for those in it for the long haul.
The upcoming London Blockchain Summit will present an opportunity for the Lunar team to give an update on its products and how it intends to push the project forward in 2023. This meetup may throw up some exciting stuff that will make the token the market's darling once more.
Author: Eno Eteng
Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about cryptos, FX and CFDs. Since 2009, he has been a consultant for several companies in the financial market space. His work can be seen on several forex and crypto-related blogs and trading educational websites.