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Terra Luna Classic price is at risk of further downside as its exchange volume slumped and a risky pattern formed.
Terra Luna Classic ($LUNC) was trading at $0.000055, just above this week’s low of $0.000050.
CoinGecko data shows that daily volume has dropped to just $9.4 million, signaling waning demand as overall crypto sentiment deteriorates.
The same trend is visible in the futures market, where open interest has declined to $8.46 million from last month’s high of over $15 million. Falling volume and open interest can be risky indicators and often point to further downside.
Additional data shows that $LUNC’s weighted funding rate turned negative for the first time since June 24. A falling and negative funding rate signals that investors expect its future price to be lower than current levels.
There are also signs that some investors are moving their $LUNC holdings to exchanges—the first step before selling. Exchange inflows rose to $233,000 on Thursday.
$LUNC remains one of the most deflationary tokens in the crypto industry. Weekly burns have jumped to over 365 million tokens, bringing the total $LUNC token burn to over 411 billion. Token burns reduce circulating supply and can create positive sentiment around a cryptocurrency.
$LUNC price technical analysis
The daily chart shows that $LUNC has crashed this year, falling from a high of $0.0001790 in November to $0.000050. It has dropped below both the 50-day and 100-day Exponential Moving Averages, a sign that bears are gaining momentum.
Terra Luna Classic has also formed a descending triangle pattern, a commonly bearish continuation signal. This pattern includes a horizontal base, currently around $0.00005078, and a descending trendline connecting lower swing highs since January 19.
Therefore, the token is at risk of a strong bearish breakout, with the initial target at $0.00005078. A drop below that level could open the door to further downside, potentially retesting the year-to-date low of $0.00004695.