LUNC Token Seeks Recovery Amidst Impending Binance Burn, Following 26% Monthly Decline
The LUNC token from Terra Classic has faced a significant downturn over the past month, experiencing a decline of more than 26%. Coinmarketcap data reveals that LUNC reached its monthly peak at $0.0001253 before sharply dropping to a low of $0.00007334.
However, following this dip, the token has stabilized and managed to maintain its position above the $0.000080 support level. The daily chart indicates a slight recovery, with LUNC experiencing a modest increase of 1.67%.
At the time of writing, LUNC is trading at $0.00008396, and its intraday market cap has surged to $460,930,474, securing the token’s position at the 128th spot in market rankings.
This positive turn comes ahead of a significant LUNC burn that is scheduled by Binance, a popular cryptocurrency exchange, next week. The anticipation of this burn has infused some optimism into market sentiment. However, the token’s 24-hour trading volume has declined by 14.83% to $20,613,785, suggesting a decrease in investor interest.
Contrasting LUNC’s movement, the USTC token has seen a slight increase of 1.51% to $0.01829, despite a 31% decrease in trading volumes over the past day. The price of USTC fluctuated between $0.01803 and $0.01842 during this period.
The Terra Luna Classic community is eagerly awaiting the Binance LUNC burn mechanism, which is expected to play a crucial role in reducing the overall LUNC supply. Recent data shows that LUNC’s total supply has decreased to 6.79 trillion due to significant trading volumes and burn events.
Additionally, the enthusiasm for staking with Terra Luna Classic validators is apparent, with over 1 trillion LUNC being staked, driving the staking ratio up to 14.83%. The community pool reserve has also experienced notable growth, now holding 6.22 billion LUNC and 12.37 million USTC, ensuring sufficient resources for future development projects.
On the technical side, the LUNC/USD pair has rebounded from the support level of approximately $0.000071462 seen on Monday, as indicated by the 4-hour chart. The token is now approaching the intraday resistance level of $0.00008411.
Following a significant downward parallel channel since reaching its May high of $0.00013 (representing a 45.50% dip), the upcoming month’s scheduled burn events could potentially introduce substantial momentum into the trading volume, potentially catalyzing an upward trajectory for LUNC.
If market forces align, a breakout past the $0.000090 threshold could unlock further gains, propelling the token towards the $0.000094 mark. This upward surge may even pave the way for a retest of the $0.00011 level, highlighting a promising outlook for LUNC’s value.
However, the path forward remains uncertain. The resistance at $0.00008411 looms large, and if it holds firm, LUNC might retreat towards the June low of $0.0000714 as it searches for a support base.
Please note that the information provided in this article is for informational and educational purposes only. It does not constitute financial advice or any kind of recommendation. Readers should exercise caution and conduct their own research before making any investment decisions.