Jul 26, 2022 02:00AM ET
By: AnalysisWatch
As lawsuits pile up against Do Kwon, Daniel Shin, and Terraform Labs, the U.S. community has shifted focus to the Luna Classic (LUNC) burn.
The Luna Classic's price trend has revealed upside potential, and the bears are fighting to regain control of LUNC.
The community is focused on Proposal 3568 to improve Luna Classic by implementing a burning mechanism. The proposal mentions a tax burn mechanism to reduce the total supply of LUNA Classic by increasing the value of leftover tokens. The burn mechanism should be true until the total supply in circulation is reduced to 10 billion.
LUNC's price trend recently turned bullish in the short term after the price broke out of the falling wedge. LUNC's long-term outlook remains bearish. After the massive sell-off that followed the collapse of Terra's sister token, LUNA-UST, there was tremendous selling pressure on LUNA Classic.
Consequently, several analysts offered bearish predictions for LUNC with the rise of LUNA 2.0. In particular, the rise of LUNA 2.0 had a negative impact on LUNA Classic.
With Luna Classic trading above its 200-day moving average, the altcoin is likely headed for its weekly high and upside target of $0.0001234. If Luna Classic's price is rejected at $0.00011, it is likely to continue its downtrend.
To break out of its downtrend, the price of Luna Classic must remain above support and rise towards the upside targets of $0.0009807, $0.00011180, and $0.0001234.
The current downtrend is likely to reverse as trading volume has declined since early July 2022. Interest in the Luna Classic has declined. However, the increase in the number of LUNCs burned could trigger bullish sentiment among holders.
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