Luna Classic (LUNC) holders may be awfully happy this week, thanks to…
Just two days before the implementation of the long-awaited 1.2% Luna Classic tax burn, Binance has added LUNC and USTC to Binance Convert.
This development is good news for the LUNC community, as it will help add more value to the crypto, which had been lying on a deathbed for months.
With this new update, users can now exchange LUNC and USTC for free against BTC, BUSD, USDT, and any other supported tokens via Binance Convert.
Therefore, this episode might fuel the next pump of Terra Classic. The coin did not perform quite well in the last 24 hours as it registered a negative 10% move.
At the time of writing, Luna Classic (LUNC) was trading at $0.0004092 with a market capitalization of $2,516,745,696, which is still commendable compared to the token’s last month’s performance.
The implications of LUNC tax burn
The entire LUNC community is hyped as they expect LUNC price to jump drastically once the tax burn protocol is implemented.
LUNC is also getting support from several exchanges as they agree to accept the tax burn protocol. Moreover, MEXC Global, a popular crypto exchange platform, announced that they are doing an additional LUNC burn on top of the 1.2% burn, which might soon reflect in LUNC’s price action.
In the official statement, MEXC Global mentioned, “For every qualified user whose net deposit amount during the campaign period is > $500, and Spot trading volume > 2,000 USDT or Futures trading volume > 10,000 USDT, MEXC will support this initiative by contributing $20 worth of LUNC to the burning pool.”
Interestingly, Binance also burned a small quantity of Luna Classic and sent them to the burn address. This further increases the possibility of Luna Classic receiving more support from other players in the crypto industry in the days to come.
Several on-chain metrics also supported the recent price surge of Luna Classic. For instance, the development activity increased considerably over the last month, which reflects the efforts of the developers in improving the blockchain.
The social volume metric also went up. Thus, suggesting an increased interest from investors and crypto enthusiasts in Luna Classic.
However, after the massive uptick, LUNC’s volume followed the opposite route and declined during the last week, which is a bearish signal.
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That said, the 4-hour chart of LUNC paints a bearish picture. Most market indicators point to a price plunge in the coming days.
The Relative Strength Index (RSI) and Chaikin Money Flow (CMF) registered a downward movement. This indicated that the price is likely to fall in the near term.
Furthermore, MACD’s reading also showed a bearish crossover. Thus, suggesting sellers’ advantage in the market. Data from Bollinger Band supported the possibility of a price drop as LUNC price was about to enter a crunched zone soon, after a high volatility.