The price of Terra Classic (LUNC) dropped below $0.0001 as negative influences swept through the market after a brief recovery earlier in the week.
Cryptocurrencies had a modest bounce back this week, but the bullish trend is still uncertain. Take Terra Classic (LUNC), for example. While it edged up slightly above $0.0001 after finding support around $0.00009, it later dipped to $0.000095 on Wednesday during US business hours.
Market Expectations and Halving Influence
The cryptocurrency market is facing potential further losses, with an anticipated lull preceding an expected pre-halving rally.
The halving is a significant event occurring every four years in the Bitcoin code, leading to a reduction in miner rewards and a consequent decrease in the supply of BTC. Historically, this has resulted in a substantial rally in BTC prices, driven by increased demand for the coin. This positive effect has often extended to other tokens like LUNC.
Factors Influencing Terra Classic (LUNC) Performance
Terra Classic (LUNC) Bottom: Terra Classic is approaching a key support level at $0.000054, which served as a bottom during a significant sell-off in 2022. In October 2023, this support was successfully tested, leading to a sharp rebound to $0.00028 in December. According to Fibonacci levels, LUNC has corrected more than expected, nearing a retracement ratio of 0.618 from the previous peak. Further decline may see LUNC exploring below the rising trendline on the daily chart, possibly touching liquidity at $0.000054. Despite the downtrend, trading near the bottom price suggests a rebound is likely, especially as the Relative Strength Index (RSI) approaches 30, signaling a potential buying opportunity.
LUNC price chart | Tradingview
The Terra Classic Community: Despite negative publicity from the Terra Luna crash saga, the Terra Classic community remained steadfast in supporting the project. The community played a significant role in the commendable rally witnessed in Q4, indicating strong potential for LUNC to surpass $1 as it aims to regain its previous success.
Binance Token Burn Program: The Terra Classic community has collectively burned 95 billion LUNC tokens since May 2022, with Binance’s token burn program contributing substantially. Binance has removed approximately 51.7% of the total burn, totaling 49.1 billion tokens. With an upcoming burn round scheduled for February 1, the community anticipates more than 100 billion LUNC tokens to be sent to a nonrecoverable wallet. To further enhance market performance, the Terra Classic project should focus on network development and increasing LUNC’s utility to boost the burn rate and reduce the current supply of 6.81 trillion tokens according to CoinMarketCap.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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