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As lawsuits pile up against Do Kwon, Daniel Shin, and Terraform Labs, the community in the United States has shifted focus to burning Luna Classic (LUNC). Luna Classic’s price trend has revealed a bullish potential, and bears are fighting to regain control of LUNC.
The community is focused on Proposal 3568 for improving Luna Classic through the implementation of a burning mechanism. The proposal mentions a tax burn mechanism to reduce the total supply of LUNA Classic, increasing the value of the leftover tokens. The burning mechanism must be true until the total circulating supply reduces to 10 billion.
The LUNC price trend recently flipped bullish for the short term after the price broke out of the falling wedge. The outlook on LUNC remains bearish in the long-term timeframe. After the massive sell-off that followed the collapse of Terra’s sister token LUNA-UST, there was tremendous selling pressure on LUNA Classic.
Consequently, several analysts offered bearish predictions for LUNC with the rise of LUNA 2.0. Notably, LUNA 2.0 airdrops had a negative impact on Luna Classic.
With Luna Classic trading above its 200-day Moving Average, the altcoin is likely headed towards its weekly high and the bullish target of $0.0001234. If Luna Classic’s price gets rejected at $0.00011, it is likely to continue its downtrend.
For Luna Classic to break out of its downtrend, the price needs to sustain above support and climb towards the bullish targets of $0.0009807, $0.00011180, and $0.0001234.
The current downtrend is likely to reverse as the trade volume has declined since the beginning of July 2022. The interest in Luna Classic has declined, however, the rise in the number of LUNC burned could trigger a bullish sentiment among holders.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CQ. No information in this article should be interpreted as investment advice. CQ encourages all users to do their own research before investing in cryptocurrencies.