Could This Altcoin Have a Bright Future?

0

With the collapse in May cryptocurrency After the Terra ecosystem migrated to a new blockchain, which has wreaked havoc on the market, the community Terra Classic (LUNC) started to support the project.

The long-awaited 1.2% β€œtax burns” in Terra Classic has finally been applied to the blockchain. This development was highlighted by the community with the narrative of the revival of LUNC. With some crypto exchanges announcing that they will support these tax burns, community members started to get excited, but the price did not give the expected reaction. So, can LUNC really recapture its bright days with these developments?

Investors and enthusiasts still maintain their confidence despite the setbacks. LUNC Its holders believe that LUNC will continue to rise and regain its former glory in the months and years to come. However, it’s crucial to take a closer look at what’s happening in the ecosystem to better understand what to expect.

What’s Happening in Terra Classic?

When information emerged regarding some problems with the protocol, it was followed by a number of announcements that the developers were working to fix the issue. Whatever the problem, the good news was that after launch, the daily burn rate has grown to over 243 million daily, with a total of over 4 billion LUNC burned.

This is certainly a positive development, as burning such large quantities will limit the supply of LUNC in the future. Thus, in the long run, the price of LUNC will have more potential to rise again.

Interestingly, among all these developments, some false information has also started to spread on social media. For example, some users on Twitter Binance they were not in control of the news coming from the front and therefore caused misunderstandings.

Classy, ​​a popular crypto phenomenon on Twitter, talked about the real scenario that helped clear the cloud about Binance’s location. She explained that lunc’s network burn mechanism is supported by Binance and if this mechanism is added to Binance, it would be a huge help.

So What Should Investors Be Prepared For?

LUNC, which recorded great increases last month, failed to meet the expectations of investors after the tax burn. At the time of writing, LUNC is down 3.40% on the 24-hour chart and was trading at $0.0002573 with a market capitalization of $1,585,327,915.

Terra Classic

In addition, data from Santiment also revealed several reasons that may have played a role in this decline. For example, LUNC’s trading volume has decreased significantly over the past few days. Additionally, the blockchain’s network activity has followed a similar steep downward trajectory.

As of September 23, LUNC’s four-hour chart also revealed a similar outlook, as most market indicators continue to trend bearish.

For example, the Relative Strength Index (RSI) and Chaikin Money Flow (CMF), both can see declines. This revealed a sellers advantage in the market.

Also, the 20-day Exponential Moving Average (EMA) was below the 55-day EMA, which is again bearish. Therefore, it is not clear what will happen for the recently revived token.

LUNC analysis

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.


source site-6