- LUNC price shows a potential top formation that could trigger a 20% downswing to $0.234.
- Investors should prepare for a much steeper correction as the second burn event announcement is scheduled in a few hours.
- A daily candlestick close above $0.343 will invalidate the bullish thesis for LUNC.
LUNC price shows a tight consolidation around the Point of Control (POC), indicating a lack of volatility. However, things could spice up due to Binance’s upcoming LUNA burn announcement that is scheduled on October 10 at 00:00 UTC.
The 66% jump that altcoin experienced after Binance’s initial announcement on September 26 seems to be coming undone. This development is partly due to the underwhelming amount of LUNC tokens being burned, but a major part of it can be attributed to the lack of Luna Foundation Group’s (LFG) slow-paced decision-making in compensating the small holders after the Terra ecosystem’s implosion.
10/ The Foundation is looking to use its remaining assets to compensate remaining users of $UST, smallest holders first.
— LFG | Luna Foundation Guard (@LFG_org) May 16, 2022
We are still debating through various distribution methods, updates to follow soon.
The first week of burn only amounted to roughly 5.6 billion tokens amid a total circulating supply of 6.1 trillion. Due to this underwhelming amount, the LUNA Classic price dropped 24% between October 2 and October 6.
In addition to the already worsening situation, Do Kwon’s passport is said to expire on October 19, according to a local news outlet.
LUNC price upside is capped
LUNC price is stuck below the $0.000343 to $0.000329 resistance area and has already attempted recovery on October 2 and failed. The volume profile shows that the altcoin is hovering above the Point of Control (POC) at $0.0000292, which is the highest volume traded level since August 24.
A breakdown of this level will trigger a correction to the next support level at $0.234, which is roughly 20% from the current position. A spike in selling pressure at this level or the lack of willing buyers due to the underwhelming amount of LUNC burned could extend this correction in LUNC price to the low volume nodes at $0.000176 and $0.000142.
In total, this move would constitute a 51% loss when measured from the current position at $0.000298 and is likely where the downside is capped for LUNC price.
LUNC/USDT 1-day chart
On the other hand, if LUNC price manages to flip the $0.000343 to $0.000329 resistance area into a support floor, it will invalidate the bearish thesis. This development could see LUNC price attempt a 16% bounce to $0.000400.
Note:
The video attached below talks about Bitcoin price and its potential outlook, however, this is still relevant as it is likely to influence LUNA Classic price.
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