Despite significant efforts to burn coins, Terra Luna Classic (LUNC) continues to see a decline in value. In just one week, 1.6 billion LUNC tokens were removed from circulation, yet the asset’s price dropped by 21%. This drop occurs even as the broader cryptocurrency market appears to be on the mend, leaving many traders puzzled about LUNC’s ongoing downward spiral.
What Impact Do Coin Burns Have on LUNC?
The recent coin burn event on Binance resulted in a notable 21% decrease in LUNC’s market price, even after 1.68 billion coins were eliminated. Over time, the community has successfully burned over 402.57 billion LUNC tokens, yet this strategy hasn’t led to sustained price increases. Instead, the latest large-scale burn has coincided with further price drops.
Is LUNC Facing Further Declines?
As LUNC trades at $0.00006124, it faces ongoing selling pressure despite a recovering market. The altcoin has seen a 1.9% decline in the past 24 hours, remaining below the critical resistance level of $0.00007, causing increased selling activity among short-term traders.
– 1.6 billion LUNC burned last week failed to halt price drops.
– Total LUNC burn exceeds 402.57 billion tokens.
– Current trading price stands at $0.00006124, indicating sustained selling pressure.
– Resistance level at $0.00007 complicates any bullish momentum for LUNC.
Technical indicators suggest that if LUNC stays below the EMA20 trend line, a further drop to $0.000048 is likely. The Relative Strength Index (RSI) stands at 39, suggesting market indecision. For potential recovery, LUNC must maintain levels above $0.00008 to target a rise towards $0.000108.
