Terra Classic is showing some signs of life thanks to a system that is being implemented by leading cryptocurrency exchange platform, Binance.
Binance burns another 3 billion LUNC, brings total of burned units to 17.9 billion
LUNC briefly exhibits upward price rally, up by 5% in the past 24 hours at one point
A 12% dip might bring Terra Classic price all the way to $0.00018
It can be recalled that on September 26, 2022, the company decided to burn all spot and margin trading fees on LUNC transactions by sending them to a specific wallet address.
This was Binance’s response to the proposal of the Terra Classic community to maintain good trading experience for its users.
Since then, around 17.9 billion LUNC tokens have been burned. The latest process initiated by the crypto exchange led to the destruction of 3 billion units of the crypto.
There was an apparent positive response to this development, as Terra Classic notches 5% spike in the last 24 hours. But can LUNC step up and gain more?
Not A Smooth Sailing For Terra Classic
It would appear the digital token failed to capitalize on what is now considered short-lived gain following another massive burning courtesy of Binance.
LUNC rice is now eyeing a 12% discount and investors are now wondering if they should buy the dip.
At press time, according to tracking from Coincodex, LUNC is changing hands at $0.000277 and is now down by 7.55% for the past 24-hours as it quickly relinquished its 5% spike earlier.
The recent Binance burn activity made buyers busy as they exerted effort in trying to rally the asset to continue its price recovery and close in on the $0.00036 resistance level.
Sellers, however, were quick to make their counter move by putting a lot of selling pressure. As a result, the LUNC coin once again exhibited bearish signals.
The crypto could be looking at a 12% drop all the way to the $0.000271-$0.00026 demand zone. Failure to hold this level would mean significant price slashing, putting the asset’s trading price to $0.00018.
LUNC’s Lingering Struggles
Over the past year, Terra Classic dealt with a lot of struggle. Aside from the given fact that it has been outperformed by heavyweights Bitcoin and Ethereum, it has also been outperformed by all of the top 100 crypto assets.
It has also lost 100% of its all-time high value of $119.01 that was attained on April 5 this year and is sitting on a yearly inflation rate that is 1,534,969.16%.
Its investors are currently pinning their hopes on the idea that LUNC is trading on Binance and is oversold and thus may rise soon.
However, if the current burning mechanism being implemented by the crypto exchange doesn’t successfully push the token’s price, investors might start to move away from it no matter how much discount there is.
LUNC market cap at $1.7 billion | Featured image from Criptokio, Chart: TradingView.com