Terra Classic (LUNC) Poised for Growth Amid Market Activity and Token Burns

Following a dip to $0.00005697 on July 5, Terra Classic recovered substantially, delivering a 38% return for opportunistic investors. The altcoin now faces resistance around the $0.00008052 mark. Breaking past this level could trigger a further 46% increase to $0.0001. Conversely, failing to overcome this resistance might lead to a retracement to approximately $0.000066. Despite moving above its 21-day Simple Moving Average (SMA), LUNC still faces resistance from both its 50-day and 200-day SMAs.

Multiple technical metrics show a promising outlook for Terra Classic. The Relative Strength Index (RSI) stands at 51.22, indicating bolstered bullish momentum. Similarly, the Chaikin Money Flow (CMF) value of 0.03 points to enhanced buying pressure. Additionally, the Moving Average Convergence Divergence (MACD) indicator crossed above the signal line on July 10, signaling a potential shift from bearish to bullish trends.

Community Support And Upcoming Token Burns

Community support for Terra Classic remains robust, with over 1 trillion LUNC currently staked, reducing the circulating supply and potentially supporting price increases. The forthcoming token burn update from Binance, anticipated in August, is expected to remove over 1.7 billion LUNC from circulation, further constraining supply. The resolution of legal issues by August 9 could also speed up the ecosystem’s recovery efforts.

Recent legal developments have significantly impacted Terra Classic’s market dynamics. A court extended the deadline for claims in its bankruptcy case to August 9, which could expedite the overall ecosystem recovery. Notably, Binance burned 50% of LUNC trading fees in June, approximately 797 million LUNC, setting the stage for more substantial burns in the future. The community eagerly awaits the next token burn update, expected to withdraw over 1.7 billion LUNC from the market.

Community Involvement And Future Outlook

With over 1 trillion LUNC—more than 15% of the total circulating supply—staked, the community’s commitment remains strong. This development could further reduce the circulating supply, aiding in price stabilization. Additionally, anticipated token burns from Terraform Labs (TFL) wallets are expected to diminish the altcoin’s supply even more. Terra Classic’s recent price movements reflect strong community support, improved technical indicators, and significant upcoming events such as token burns and legal resolutions.

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Investors should watch the $0.00008052 resistance level closely. Successfully breaking this level could predict a further rise to $0.0001, while failing to do so might offer buying opportunities around $0.000066.

Disclaimer: The information in this article should not be considered financial advice, and FXCryptoNews articles are intended only to provide educational and general information. Please consult with a financial advisor before making any investment decisions.