Could The Oncoming LUNC Burn Fuel A 25% Breakout For Terra Luna Classic Price?

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Terra Luna Classic (LUNC) price has been trading sideways for three weeks in a row, consolidating above the $0.000100 support floor while the resistance confluence between the $0.000121 horizontal line and the 50-day Simple Moving Average capped any upside. The bearishness and indecisiveness came from core developers Ed Kim and Tobias “Zaradar” Andersen leaving the Joint L1 Task Force developer team. This sparked unprecedented division among community members over the capabilities of the new Joint L1 Task Force.

Nevertheless, as the new month kicks off, the altcoin appears ready for a takeoff, with a significant possible catalyst near sight.

In two daysть@binance will once again burn tokens to show support for the $LUNC chain?
Like+RT to show some support for #Binance pic.twitter.com/pCYAaeOu2p

— LUNC NEWS ? (@Chot4a) April 30, 2023

At the time of writing, Terra Luna Classic price is $0.000108, down almost 3% in the last 24 hours. Based on CoinMarketCap data, investors are showing some activity, as the LUNC token is recording a 5% increase in its 24-hour trading volume. Notably, if a stock with a high trading volume rises, it usually means strong buying pressure. This comes as investor demand pushes the stock to higher and higher prices. The reverse is true - if the price of a stock with a high trading volume is falling, it suggests that there is a lot of selling pressure.

Terra Luna Classic Price Could Recover Amid Binance Exchange’s Massive LUNC Burn

As the countdown to the LUNC burn by Binance continues, the Terra Luna Classic price appears to be reading for a breakout. Another burn set the tone during the last week of April, where Terra Classic network-based project Cremation Coin burned more than 24 million LUNC as part of its weekly burn campaign.

Good job Cremation. You have been supporting some serious burn weekly for Lunc. Much better than the TP which rug Lunc community. A success is always working hand in hand, not hit and run. ?

— KT (@ktham43) May 1, 2023

Based on the burn transaction, Cremation Coin sent 24.04 million LUNC tokens to the burn address on April 25, with the transaction fee for the transfer totaling 48k LUNC. With the new series of massive LUNC burn, the aggregate burn by Cremation Coin has reached almost 369 million LUNC tokens. The burn series gave some relief to the crypto community amid a continued drop in the LUNC burn rate. As it stands, the weekly LUNC burn chart is almost flattening out, and hopefully, the Binance burn series will provoke a takeoff.

Binance Alters LUNC Burn as a Development Fund

Binance exchange’s oncoming LUNC burn program was recently adjusted under Proposal 10983 and 11111, “where LUNC burn is being re-minted as a development fund.” As such, the implementation of these changes will be channeled toward LUNC trading fees to shrink the network’s supply.

[This is] in line with what the community originally looked forward to. Beginning December 2023, the Malta-based exchange will burn 50% of LUNC spot and margin trading fees instead of 100%.

The exchange will also delay the process of transferring the LUNC trading fee burn contribution. The move will see LUNC trading fees excluded from the re-minting exercise. Meanwhile, Binance has sent a request to the leadership team at the Terra Grants Foundation. In the exchange’s words,

…Create a new burn wallet that Binance can send the LUNC spot and margin trading fees to that does not allow re-minting of the burn amount.

Further, Binance has also asked the team “to whitelist Binance’s wallets so that the transaction tax is not applied when transferring between these wallets.”

It is worth mentioning that Binance promised to work with the Terra Luna Classic community toward the implementation of this new plan. According to the largest exchange by trading volume, failure to continue with the changes, as stated, could see Binance consider withdrawing the burn contribution.

Terra Luna Classic Price Coils Up For a 20% Breakout

After hitting rock bottom, the Terra Luna Classic price appears ready for a breakout. An increase in buyer momentum as traders and investors ‘buy the rumor and sell the news’ could catapult a northbound move. In such a case, LUNC could make a 12% upswing to confront the immediate resistance level at $0.000121. This is a crucial supplier congestion zone indicated by the confluence between the horizontal line and the 50-day SMA.

If sidelined investors join in at the confluence level, it could reinvigorate the Terra Luna Classic price rally, causing an extended rise to $0.000135. Such a move would denote a 25% ascent from the current price.

Notice that the Moving Average Convergence Divergence (MACD) indicator had just signaled a call to buy LUNC when it crossed above the signal line in orange. Traders heeding this call would catalyze an upswing in the Terra Luna Classic price.

LUNC price — TradingView Chart: LUNC/USDT 1-day chart

On the downside, if bearish momentum overpowers the bulls, Terra Luna Classic price could drop toward the $0.000100 support floor. Notice that the Relative Strength Index (RSI) was just about to call a sell signal when it crossed below the Stochastic RSI. Traders heeding this call could mean bearish sentiment for the altcoin.

LUC Alternative

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