AI predicts the Terra Classic (LUNC) price for the end of the year

Terra Classic (LUNC) struggled to sustain prices in 2024. Various measures have been taken to stabilize LUNC’s prices – most notably token burns, which aim to reduce supply and therefore increase value.

With the broader cryptocurrency market entering a full-blown bull market, many traders are anticipating the start of the long-awaited altcoin season. Some are speculating that the broader rise, coupled with falling supply, could see LUNC see significant upside – especially given its performance last month.

LUNC was trading at $0.0001225 at press time after a 5.22% rise on the daily chart took weekly returns to 8.82% and last 30-day returns to 32.68 % increased. On an annual basis (YTD), prices are still down 11.61%.

Based on the recent positive price trend for Terra Classic, Finbold consulted some of the best-performing publicly available large-language models to provide additional context to the situation.

AI outlines bullish and bearish factors at play in LUNC

When asked to provide end-2024 price targets for Terra Classic, one of OpenAI’s most advanced models, ChatGPT-4o, pointed to a number of bullish and bearish factors. The AI ​​model also sets two price targets – one dependent on bullish factors prevailing, while the other is based on more bearish developments.

On the bullish side, GPT-4o noted efforts to reduce LUNC’s circulating supply as well as the ecosystem’s active community, highlighting the recent launch of the Terraport decentralized exchange. Additionally, the model also noted positive market sentiment and analyst estimates.

Unsurprisingly, the pessimistic arguments were equally, if not more, convincing. Terra Classic’s sharp price fluctuations in the past were the first factor that GPT-4o noticed. She also argued that the reputational damage caused by Terraform Labs founder Do Kwon would serve to deter potential institutional investors while attracting increased scrutiny from regulators.

Additionally, the network’s staking and minting mechanisms have been highlighted as potential risk factors, as they could hypothetically re-trigger the inflationary pressures that had wreaked such havoc on LUNC and LUNA in the first place.

GPT-4o set two price targets for LUNC

Taking all factors into account, two price targets were set – both would result in significant moves.

GPT-4o predicted that LUNC could reach a price of $0.000213 by the end of 2024 – which represents a 73.88% increase from current prices in the bullish scenario. Conversely, it said that Terra Classic prices could fall as low as $0.000096 in the event of an economic slowdown – a 21.63% decline from prices at the time of publication.

Traders should note that even the most advanced large language models, while useful, are not a suitable substitute for proper analysis. Fundamentally, LUNC remains a high-risk play with limited upside potential.

There are a variety of projects that have nothing to do with Terra Classic’s baggage, have no supply issues, and have much larger communities – many of which will benefit much more from the current favorable market conditions.

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