The Terra Luna Classic [LUNC] ecosystem is currently experiencing a range of changes in terms of price movements, token burns, and futures trading volume unraveling.
Nevertheless, recent token burn events and price fluctuations indicate a possible shift in the market, yet the most recent price changes and open interest figures underscore a nuanced scenario.
Price Update and Market Activity for LUNC
As of the latest update, Terra Classic (LUNC) is valued at $0.00009008, showing a drop of 4.19% in the last 24 hours. The trading volume for LUNC over the past day is recorded at $27,294,595.
Over the previous week, LUNC has seen a modest increase of 0.37%, hinting at some stability in an overall volatile market landscape. With a circulating supply of approximately 5.7 trillion, LUNC’s market capitalization stands around $513.1 million.
Source: TradingView
The recent price fluctuation follows the burning of 15 million LUNC tokens on October 22nd as part of continuous endeavors to lessen the supply and potentially boost price appreciation.
Despite the deflationary strategy’s aim to enhance value over time, the immediate impact has been restricted, evident through the recent price dip.
Analysis: Ascending Levels of Support and Resistance
Analysis of the LUNC price chart reveals an ascending trendline, signaling persistent efforts from buyers to drive the price upwards. This trendline has functioned as support in recent times, creating higher lows.
Should the price uphold this upward trajectory, it could indicate further bullish momentum.
Notably, the $0.00012740 level serves as a crucial resistance point, marking the next objective for a potential breakout. A successful breach of this level might pave the way for additional price hikes, provided there is sustained buying pressure.
Source: TradingView
Conversely, support levels are identified at $0.00008850 and $0.00006390. These levels could offer a buffer in case of price declines, especially if the ascending trendline fails to sustain.
A breach below these support levels could indicate a reversal towards a bearish trend.
Futures Market: Diminishing Open Interest and Volume
The LUNC futures market has witnessed a noticeable drop in open interest, currently standing at $9.27 million, reflecting a 4.68% decrease compared to recent levels according to Coinglass data.
This reduction in open interest aligns with a broader trend observed over the past year, with open interest hitting a peak of nearly $100 million in September 2022 before declining.
Lower open interest implies reduced market participation, potentially leading to decreased volatility in the short term.
Source: Coinglass
Furthermore, volume in the LUNC futures market has declined by 66.35%, reaching $10.45 million.
This decrease indicates a decrease in speculative interest, possibly influenced by several factors, including the current price stability and overall market sentiment.