Given the day-to-day fluctuations noticed in the trading volume of Terra Classic (LUNC), analysts have charted out the expected price trend for the popular crypto asset in the coming days and weeks.
At the time of writing, LUNC is trading for $0.000157 per coin, having appreciated by only 0.74% in the last 24 hours. This current value of LUNC goes further to show a price increase of over 24% and 7% in the last 30 days and 60 days respectively. But in the last 90 days, it indicates a decline of roughly 30%.
Following the many controversies and negative developments erupting in the Terra Classic community, including the recent resignation of Jacob Gadikan, a top developer in the project’s advancement team, traders are left to wonder which trajectory LUNC price would follow in the near term.
A close look at the 24-hour trading volumes of Terra Classic in the past weeks paints a bad picture for LUNC. On-chain data show a notable decline in this parameter, indicating low investor interest in the asset.
As shown on Coinmarketcap, the 24 hours trading volume of LUNC at the time of writing is $76 million. But on January 14, LUNC’s trading volume surpassed $380 million, with its price exceeding the $0.00019 level. Thus, in a matter of weeks, the trading volume of LUNC dropped drastically by 80%.
By implication, investors have lost interest in the asset and accordingly, its value could drop lower in the near term. Particularly, looking at the LUNC/ USDT chart, the asset’s 30-day moving average (red) keeps pushing below its 200-day average (blue).
This suggests that the price of LUNC is likely to not return to consistent growth until the 30-day has bottomed out. However, there is still hope for the project as Binance could resume support for its burning initiative.
Binance’s Impact on LUNC
Amid the conceivable LUNC downswing, several positive outcomes including the recent passing of Edward Kim’s Proposal 11310 – which recommends an upgrade of the Terra Classic blockchain from v.1.0.4 to v.1.0.5 – the asset’s price could gain upward momentum.
As earlier reported by Timestabloid, Classy, a top validator on the Terra Classic network – who burned 100% of his validator commission in a particular month – noted that the passing of Proposal 11310 could cause Binance to resume LUNC burning.
LUNC burning is among the top initiatives in the community as members believe reducing the token’s total supply from the initial 6.9 trillion to 10 billion would help boost the asset’s price. In contrast, a prominent community member stated that more utility and LUNC staking would be the fastest way to boost the asset’s price.
Notably, before the largest crypto exchange Binance reduced its LUNC burn contribution and halted burning events, the exchange voluntarily destroyed roughly 20.1 billion LUNC.
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