The original Terra chain’s Luna Classic (LUNC) token is getting attention again, helped by news that the crypto exchange Binance has implemented a new burn mechanism for it. The question now is how high can LUNC go after the next burn.
When Binance first announced its token burn mechanism for Luna Classic on September 26, the token soared by close to 68% in a day. The news pushed the token up from lows of around $0.00018 that day, and to $0.00037 on October 2, more than a doubling of its price in just six days.
Binance conducts the burn by sending trading fees it generates on LUNC spot and margin trading pairs to the LUNC burn address. According to the exchange, the practice will continue to take place every Tuesday “until further notice.”
The next burn is scheduled for Tuesday October 11 at 00:00 UTC.
Looking forward, it’s difficult to predict where the next short-term move will be, given that the relative strength index (RSI) is now in neutral territory. However, support to the downside exists around the $0.00025 area, as well as around the September 26 low of $0.00018.
To the upside, the first target to look for would be the high from October 2 of $0.00037, after which further upside towards $0.0006 could be in the cards.
Notably, both the 20 and 50-day moving average lines are now below the price and pointing up, indicating that LUNC remains in a clear uptrend on the daily chart.
LUNC daily chart. Source: TradingView
LUNC has shown a surprising level of resilience after the collapse of the original Terra ecosystem, including the terraUSD (USTC) algorithmic stablecoin, back in May of this year. From a low of $0.00004 in early June, the token is now up by close to 600%, trading at $0.00029 as of press time at 11:48 UTC.
Before the collapse, the original LUNA token traded as high as $120.
Despite the major crash, LUNC has remained a top 50 token by market capitalization after massively increasing its token supply, and is currently ranked as number 31 on CoinMarketCap’s ranking
In terms of trading volume, the token came in as the 10th most traded cryptocurrency over the past 24 hours with a volume of $363.4m. By comparison, the most traded cryptocurrency – the stablecoin tether (USDT) – came in with a 24-hour volume of $37.33bn.
Compiled by Coinbold