LUNC price slips despite 15M token burn as futures open interest drops

• 15 million LUNC tokens were burned, but the price fell 4.19% amid dropping market interest.
• Futures open interest hit $9.27 million, marking a significant decline as trading volume plunged by 66.35%.

Terra Luna Classic [LUNC] ecosystem is witnessing a mix of developments as price trends, token burns, and futures trading volume unfold. 

However, recent token burns and price actions suggest a potential shift in the market, but the latest price movement and open interest data indicate a complex situation.

LUNC price update and market activity

Terra Classic (LUNC) stands at $0.00009008 as of press time, reflecting a decline of 4.19% over the past 24 hours. The 24-hour trading volume for LUNC is reported at $27,294,595. 

Over the past seven days, LUNC has registered a modest increase of 0.37%, suggesting some stability in a largely volatile market. LUNC’s circulating supply is estimated to be around 5.7 trillion, bringing its market capitalization to approximately $513.1 million.

Source: TradingView

This price movement comes after a burn of 15 million LUNC tokens on 22nd October, part of ongoing efforts to reduce supply and potentially drive price growth.

While the deflationary approach aims to increase value over time, the immediate impact has been limited, as shown by the recent drop in price.

Technical analysis: Ascending support and resistance levels

The LUNC price chart shows an ascending trendline, indicating an ongoing attempt by bulls to push the price higher. The trendline has provided support over recent weeks, creating higher lows.

If the price maintains this upward trajectory, it could signal further bullish momentum.

Key resistance is noted at the $0.00012740 level, which represents the next target for a potential breakout. A successful breach of this level could lead to further price gains, provided buying pressure sustains. 

Source: TradingView

On the downside, support levels are identified at $0.00008850 and $0.00006390. These levels could act as cushions in the event of a price dip, particularly if the ascending trendline fails to hold. 

A fall below these support levels might indicate a bearish trend reversal.

Futures market: Declining open interest and volume

The LUNC futures market has shown a notable decline in open interest, which currently stands at $9.27 million, down 4.68% from recent levels, according to Coinglass data. 

This decrease in open interest aligns with a broader trend observed over the past year. Open interest peaked at nearly $100 million in September 2022 before trending downward. 

Lower open interest suggests a decrease in market participation, potentially reducing volatility in the short term.

Source: Coinglass

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Additionally, volume in the LUNC futures market has dropped by 66.35%, reaching $10.45 million. 

This reduction indicates reduced speculative interest, which may be due to various factors, including current price stability and market sentiment.