Monday, December 5, 2022
HomeCrypto NewsMarketMassive Dump Incoming For Terra Luna Classic (LUNC) As Analyst Says The...

Massive Dump Incoming For Terra Luna Classic (LUNC) As Analyst Says The Price Action Is “Ugly”

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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.”

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.

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.

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Mark Brennan
Mark Brennan
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

Disclaimer: The content is for informational purposes only, may include the author's personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

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