A group of volunteers who want to rise from the ashes of the Terra ecosystem, which suffered a major collapse in May Terra Classic (LUNC) project, the project is used as a great speculation tool rather than having a solid foundation. Leaving even Shiba Inu, which came to the forefront with its speculations, LUNC introduced the burning mechanism on September 26. Although this development increased the price of LUNC by 66%, it may not have created a strong change in expectations in general.
While some exchanges announced that they would support the burning mechanism in the LUNC token, Binance delayed this announcement and even announced that it would not be supported for the time being. Binance will announce the final result today. Although this negative news came as a shock to the community, it could not overshadow the 591% increase recorded between August 20 and September 8, but it stabilized the gains in the short term.
In addition to this development, the Terra Classic community has attracted attention recently, as Coinbase and Robinhood started collecting signatures to list the LUNC token, and a big call on social media. Despite this big call, there was no statement from the two major exchanges. The reason for this is, of course, the founder of the collapsed Terra ecosystem. Do KwonMay be searched by Interpol.
The big crash in May, in addition to wiping out billions of dollars, spread to the crypto money market like a virus and became the trigger of major collapses. This collapse, which also prompted US regulators, could result in the banning of algorithmic stablecoins.
The only consolation for LUNC holders is that it is currently sitting above a stable support area stretching from $0.000308 to $0.000327.
Terra Classic Technical Analysis
LUNC pricemanaged to show a reversal of the support area between $0.000308 and $0.000327 after five days of trying. This development shows that the altcoin is in the safe zone and could possibly trigger an uptrend. However, the broad picture continues to decline, including the Bitcoin price.
While LUNA Classic price is less correlated with Bitcoin’s movements compared to other altcoins, a sudden sell-off for major crypto could easily impact LUNC as well. Therefore, investors should pay close attention to today’s Binance announcement; If the burn numbers are below expectations or are underwhelming, the bears could take over and trigger a crash.
The first signal of a failed LUNC rally will come when the $0.000308 to $0.000327 support area is broken. Beyond this barrier, a turn of the $0.000279 support level to a resistance barrier would invalidate the bullish argument and trigger a 17% collapse to the immediate support level of $0.000228.
In even more frightening scenarios, this drop could drop the Terra Classic price from $0.000279 to $0.000169, which is roughly 40%. However, this collapse would mean a 60% loss from the current position.
While things look bleak for the Terra LUNA Classic price, an explosive rally could be triggered if investors get a positive response from Binance’s announcement. Turning the $0.000375 hurdle into a support level will invalidate the bearish thesis for LUNC. Such a development could see it retest the top of the 591% rally at $0.000593. This move will yield an 83% gain from the current position.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.