Terra Classic To Make A Big Leap Amid Binance Burns 1.5B LUNC To
Binance burned 1.5 billion LUNC tokens, reducing the total circulating supply to 5.799 trillion tokens.
Terra classic Crypto 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.
<blockquote class="twitter-tweet"><p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/Binance?src=hash&ref_src=twsrc%5Etfw">#Binance</a> burns 1.5 billion <a href="https://twitter.com/search?q=%24LUNC&src=ctag&ref_src=twsrc%5Etfw"> LUNC </a> 🔥🔥🔥<br><br>For nearly 2 years, Binance has been actively contributing towards the recovery of <a href="https://twitter.com/hashtag/TerraClassic?src=hash&ref_src=twsrc%5Etfw">#TerraClassic</a> by method of a buyback and burn mechanism utilizing trading funds generated from <a href="https://twitter.com/search?q=%24LUNC&src=ctag&ref_src=twsrc%5Etfw"> LUNC </a> trading on the <a href="https://twitter.com/hashtag/Binance?src=hash&ref_src=twsrc%5Etfw">#Binance</a> platform.<br><br>If you ever wondered… <a href="https://t.co/hV4x4uUeSX">https://t.co/hV4x4uUeSX</a> <a href="https://t.co/LtDlhRtL7t">pic.twitter.com/LtDlhRtL7t</a></p>— #🅽🅸🅽🅹🅰 | LUNCninja.com (@LUNCninja) <a href="https://twitter.com/LUNCninja/status/1785687046683537761?ref_src=twsrc%5Etfw">May 1, 2024</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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?
In the scenario of Terra Classic (LUNC), a sustained upward momentum beyond the price point of $0.000118 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