LUNC price is showing signs promising signs of potential additional gains ahead of the upcoming Binance burn event. Recent analysis suggests that the asset could see a significant rise, especially since it just broke out of a bullish reversal pattern. On September 27, the Terra Luna Classic community passed a vote on a USTC burn proposal, further provoking more bullish bias from investors. Is LUNC on the path to recovering its previous lost glory?
Scheduled Binance Burn Is LUNC Price Catalyst
According to the Binance official LUNC support page, the crypto exchange has changed the Burning of Terra Luna Classic (LUNC) trading fees. The changes aim to enhance burns “to contribute to the supply decrease of LUNC.” The monthly LUNC burns are scheduled to be completed by Wednesday, October 2, 2024, at the latest.
Binance LUNC burns have always been bullish catalysts for the LUNC price. Since May 13, 2022, the crypto exchange has burnt 64.47 billion LUNC and 4.38 million USTC.
Meanwhile, the community has been working on more ways to eliminate the humongous supply and repeg USTC to $1. The most recently passed proposal of burning USTC tokens from wallets linked to the Mirror Protocol that have been inactive since the May 2022 crash.
Additionally, a correlation has emerged between the FTX token (FTT) and LUNC price action today, as there are rumors of FTX distributing $1.6 billion to creditors today. However, this is unconfirmed and pending court approval on October 7.
Analysts think that with FTX starting back again, there is a chance that USTC could repeg to $1, which will automatically influence the LUNC price to surge higher.
Terra Luna Classic Price Technical Analysis: Is $0.00015 Next?
The chart presents a reversal pattern— specifically an Inverse Head and Shoulders pattern, which is a bullish reversal signal. The price has been trending downward, but this pattern indicates a potential shift to the upside.
Key Support and Resistance Levels
- $0.0001: This is the neckline of the inverse head and shoulders pattern. Below it, there’s major support at $0.000008 from recent lows.
- $0.000142: This is the projected breakout target based on the height of the head-to-neckline distance. It represents a potential gain of approximately 43.78% from the breakout level.
After completing the right shoulder, the price rose up and broke above the neckline, indicating bullish momentum. If the price sustains above the neckline, it will confirm the breakout, triggering a significant bullish move higher.
A volume-confirmed breakout above the neckline suggests a potential long-term bullish reversal. However, if the LUNC price fails to sustain above the neckline, it could signal crypto market weakness and could fall below 0.000008, the low of the right shoulder, invalidating the current bullish thesis.
Frequently Asked Questions (FAQs)
The LUNC price has shown significant potential for gains due to multiple factors. A bullish reversal pattern (Inverse Head and Shoulders) has emerged, indicating a potential trend reversal. Additionally, the upcoming Binance burn scheduled for October 2, 2024, is seen as a key catalyst driving investor sentiment.
Binance has been burning LUNC trading fees to help reduce the circulating supply of LUNC, which in turn can increase the value of the remaining tokens. Since May 2022, Binance has burnt over 64.47 billion LUNC. The upcoming burn event on October 2, 2024, is expected to further boost the price of LUNC.
With the upcoming Binance burn and the community’s efforts to reduce the token supply, there is potential for LUNC to continue gaining. However, the extent of the gains will depend on whether key resistance levels are broken and whether USTC can successfully repeg to $1.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/lunc-price-eyes-40-extended-gains-ahead-of-binance-burn/
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