LUNC, the primary token in the Terra Luna Classic ecosystem, is trending strongly for the past four weeks with the support at $0.000118. LUNC was trading at $0.0001221 at the time of writing on Thursday, April 5, after a 1.5% decline over the past 24-hours.
The tug of war between the bulls and bears seems to be a long way to go. However, as the accumulation among investors continues, the bulls could push for a takeover – one that is big enough to reach the higher support at $0.0002.
Terra Luna Classic price eyes a sweep in support
Terra Luna Classic price has respected a significant descending trendline since October last year, as shown on the daily time frame chart. The bulls have made several targeted attacks along this line to weaken the seller’s rush, but their efforts have gone down the drain each time.
That said, the ongoing accumulation could be the key force needed to break through the barrier and pave the way for a new bullish phase. however, Lunch The lack of sufficient liquidity in the range of the primary support at $0.00012 could be the biggest hurdle in pushing for a substantial trend reversal.
The supertrend on the same daily chart has been bearish since early February, meaning that the status quo has not changed, and the path of least resistance is to the downside.
If the bulls give up the support at $0.00012 but aim to engage at lower levels, for example at $0.0001, Terra Luna Classic price could sweep through the fresh liquidity, and mount a tremendous rally.
Terra Luna Classic Price Short-Term Outlook – 4-Hour Chart
LUNC is largely untradeable unless experienced traders due to the volatile market between the support at $0.00012 and the immediate resistance at $0.000125.
Although a bullish candle is forming on the four-hour chart, the bulls are unlikely to face an upside hurdle unless they move above the 50-day exponential moving average (EMA).
In the event, LUNC holds steady above the 50-day and even the next resistance at $0.000125, strengthened by the 100-day EMA, awaits its biggest test at the falling trendline, $0.00013 But not to mention the wider range limit.
The Moving Average Convergence Divergence (MACD) indicator remains in the negative zone. Buying signals are likely in the coming sessions but before that it is prudent to wait for confirmation buy LUNC For short term bets.
Can LUNC rally on token burn program
The massive supply of Terra Luna Classic has been blamed for the token’s disappointing performance. To address this issue, Binance, the largest crypto exchange by trading volume in the world, has committed to reducing LUNC transaction fees following an agreement with the community.
With the help of Binance, one of the largest LUNC holders, the Terra Luna Classic community removed 52.5 billion tokens from the circulating supply. Binance contributed the largest portion of the token burn volume at approximately 30.5 billion LUNC, representing 58% of all tokens removed from supply.
latest in LUNC token burn batchBinance moves 1.612 billion LUNC tokens to burn address.
Binance also changed the token burn schedule from weekly to monthly in an effort to reduce costs and reorganize the program. There has also been a noticeable drop in tokens burned on the exchange after revising the LUNC spot burn schedule to 50% and margin trading fees from 100% after the community rejected a proposal to increase the burn rate.
Despite efforts to reduce the supply of Terra Luna Classic in the market, its circulating supply is still in the trillions. data from coingeco shows the circulating supply to be around 5.9 trillion while the total supply of the network is roughly at 6.9 trillion.
Cryptos with huge circulating supply, such as Terra Luna Classic, find it difficult to sustain an uptrend as their supply and demand dynamics are greatly reduced. Therefore, seeing LUNC at $1 again anytime soon may be a tall order.
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