IncomeSharks says LUNC is looking to retest the lows.
In a tweet today, crypto analysis dedicated account IncomeSharks sharing a 4-hour LUNC trading chart, expressed the opinion that the token is looking to reclaim previous price lows as it continues to range below the previous upward trendline.
Additionally, the analysis indicates that the on-balance volume of the token continues to decline.
“4h chart looking ugly,” tweeted IncomeSharks. “Declining OBV, ranging below diagonal, looks like it wants to reclaim lower levels after the big pump up.”
— IncomeSharks (@IncomeSharks) October 13, 2022
It bears mentioning that in early September, LUNC holders were excited to see their bags pump by over 300% in an otherwise bleeding crypto market. The impressive rally resulted from the hype surrounding the 1.2% tax burn proposal by Terra Classic core developer Edward Kim, which promised to bring down the LUNC supply to 10 billion.
However, after the tax parameter change implementation, volumes have dropped considerably. Alex Forshaw, a Terra developer, opposed to the 1.2% tax, estimates that on-chain volumes have dropped as much as 90% since. Consequently, only about 5.5 billion LUNC has been burnt by the tax so far.
🔥Total burned $Lunc: 18.52b🔥
🔥Total since 1.2% burn tax: 5.5b🔥
Vol24h: $406,734,493$Lunc Staking
— LUNC Burn (@LunaBurn_13) October 12, 2022
It bears mentioning that the price has since given away over 40% of the gains made in early September while consolidating around the $0.0003 price point in recent weeks. Notably, Santiment Feed in September highlighted that LUNC’s price movements bore many similarities with DOGE last year, noting that a massive bull run could follow a consolidation following the 300% rally.
LUNC is currently trading at the $0.0002706 price point, down 7.67% in the last 24 hours and 8.87% in the past week, as the top 40 crypto assets by market cap all print daily losses. It is worth noting that the community has launched a new proposal to reduce the burn tax parameter to 0.2% to attract lost volume, even as developers work toward a solution to re-peg TerraClassicUSD (USTC) to burn LUNC faster.