- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.