- 15 million LUNC tokens were burned, but the price fell 4.19% due to declining market interest.
- Open interest on futures reached $9.27 million, marking a significant drop as trading volume fell 66.35%.
Terra Luna Classic [LUNC] ecosystem is witnessing a mix of developments as price trends, token burns and futures trading volumes unfold.
However, recent token burns and price action indicate a potential shift in the market, but the latest price movements and open interest data indicate a complex situation.
LUNC price update and market activity
Terra Classic (LUNC) stands up $0.00009008 at the time of writing, reflecting a decline of 4.19% in the past 24 hours. The 24-hour trading volume for LUNC is reported at $27,294,595.
Over the past seven days, LUNC has registered a modest gain of 0.37%, indicating some stability in a largely volatile market. LUNC’s circulating supply is estimated at approximately 5.7 trillion, bringing its market cap to approximately $513.1 million.
Source: Trading view
This price movement occurs after a burn of 15 million LUNC tokens on October 22, part of ongoing efforts to reduce supply and potentially stimulate price growth.
Although the deflationary approach aims to increase value over time, the immediate impact has been limited, as evidenced by the recent price decline.
Technical analysis: Increasing support and resistance levels
The LUNC price chart shows an ascending trendline, indicating an ongoing attempt by bulls to push the price higher. The trendline has provided support in recent weeks, creating higher lows.
If the price continues this upward trajectory, it could signal further bullish momentum.
Key resistance is noted at the $0.00012740 level, which represents the next target for a potential breakout. A successful breach of this level could lead to further price increases, provided buying pressure continues.
Source: Trading view
On the downside, support levels are identified at $0.00008850 and $0.00006390. These levels can act as a buffer in the event of a price drop, especially if the rising trendline does not hold.
A decline below these support levels could indicate a bearish trend reversal.
Futures market: Declining open interest and volume
The LUNC futures market has seen a notable decline in open interest, which currently stands at $9.27 million, down 4.68% from recent levels, according to Coin glass data.
This decline in open interest is in line with a broader trend observed over the past year. Open interest peaked at nearly $100 million in September 2022 before trending downward.
Lower open interest indicates a decline in market participation, potentially reducing short-term volatility.
Source: Coinglass
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Additionally, volume on the LUNC futures market fell 66.35% to $10.45 million.
This decline indicates reduced speculative interest, which could be due to several factors, including current price stability and market sentiment.
