“Fire in the hole” for the LUNC community, but moving averages keep Luna Classic’s price chained down.
All of Terra Luna Classic’s (LUNC) key moving averages are now flashing a ‘strong sell’ sign. This includes the daily, weekly and monthly moving averages, constituting very slow trading action for LUNC so far this year.
Moreover, LUNC’s price is currently trailing behind all three key Bollinger Bands (BOLL), with $0.00003856 being the decisive point in the near-term. $0.00003657 stood as the lowest-tier support level, so LUNC is now trading outside the structure, upping the odds of a further dip.
Market Dwindles Below $3T; LUNC Volumes Flat
With the general crypto markets tumbling below $3 trillion for the first time in a while, LUNC soaked up a lot of this turbulence, down 3.33% in 24 hours. Only $9,686,680 in trading volume suggests continuously plunging network activity, but Terra Luna Classic’s community is trying to make up for it with constant burns.
By destroying spare LUNC coins, the volunteer developers are able to induce some scarcity even with the activity plummeting. This deflationary mechanism kicked off for Luna Classic in mid-2022, when the original chain was rebranded & given to community control after TerraForm Labs filed for Chapter 11 bankruptcy a year later.
Daily LUNC Burns Soar 74%, But Price Barely Reacts
Yesterday, a whopping 39.16 million LUNC tokens were taken out of the game, marking a 74% upswing from the day before. This has successfully reduced the remaining Luna Classic supply to 6.47 trillion tokens, judging from the official LUNC burn tracker data. However, many LUNC enthusiasts argue billions should be burnt daily.
Aside from the daily burns, there’s a portion of LUNC burned on every transaction emission, but the slower the trading activity – the lower the relative LUNC burn rate. Today, it’s at just 0.0003%, setting up a dangerous precedent of unsustainable auto-burns while the altcoin already trades above all three aforementioned moving averages.
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