Terra Classic To Make A Big Leap Amid Binance Burns 1.5B LUNC Tokens

• 1 Binance burned 1.5 billion LUNC tokens, reducing the total circulating supply to 5.799 trillion tokens.
• 2 Terra classic may flip the bearish crossover of 50 and 200 day EMAs if a double bottom pattern is validated on the daily chart.

Terra Classic (LUNC) has been significantly energized by Binance, the foremost cryptocurrency exchange by trade volume. In the aftermath of Terra’s blockchain turmoil in May 2022, Binance has assumed the responsibility of curtailing the inflated supply of LUNC.

The most recent burn event for Terra Classic on May 1 saw Binance eliminate 1.5 billion tokens. Per the on-chain data, this burn event has reduced the outstanding supply of Terra Luna Classic to 5,799,881,270,168 tokens.

Terra Classic’s Resurgence: The LUNC Comeback Story! 

For almost two years now, Binance has played a pivotal role in the resurgence of Terra Classic, employing a strategy of repurchasing and burning LUNC tokens, funded by the revenue from LUNC transactions on their exchange.

The key to LUNC’s revival hinges on establishing financial strategies that methodically reduce its excess supply through incremental burns. The community is celebrating this development, which could bode well for LUNC’s future valuation. 

Let’s delve into the potential future trajectories for LUNC by analyzing its market performance.

Is Terra Classic (LUNC) Poised To Overcome The Bearish Crossover?

A sustained upward momentum beyond the $0.000118 mark could catalyze additional gains, potentially resulting in a 33% increase from the neckline of the established double bottom pattern. This projection is calculated by measuring the vertical distance from the pattern’s lowest trough to its highest peak, as depicted on the accompanying chart.

It’s important to note that a double-bottom pattern is not officially confirmed until there’s a decisive breakout above the neckline resistance. At this critical juncture, traders often place buy orders, targeting a 33% ascent in alignment with the current LUNC price forecast.

Moreover, the convergence of the 50-day Exponential Moving Average (EMA) and the 200-day EMA is forming a ‘death cross’ pattern, which typically signals a bearish market turn. Should the bulls be unable to counteract the death cross’s bearish implications, it may prompt an increase in short positions on LUNC, thereby intensifying selling pressure.

Conclusion

Binance has been instrumental in Terra Classic’s recovery, notably through a recent burn of 1.5 billion LUNC tokens, reducing the supply to 5.799 trillion. This action is part of a two-year strategy to revive LUNC by decreasing its surplus via transaction-funded burns. The community’s optimism may positively influence LUNC’s value. 

On a technical note, a price rise above $0.000118 could lead to a 33% gain, but a confirmed double-bottom pattern and a ‘death cross’ signal potential bearish turns, which could increase short-selling pressure on LUNC.

Technical levels:

• Support Levels: $0.000089 and $0.000075
• Resistance Levels: $0.000118 and $0.00016

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.

Andrew Smith

Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages ​​and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.