The value of Terra Classic (LUNC) has experienced a significant drop due to increased selling pressure, which has impacted ongoing efforts to rescue the token.
In particular, by press time, LUNC was trading at $0.00015, with the price recording a slump of almost 13% over the last 24 hours. On the daily chart, the token had peaked at $0.00017.
This sell-off has also resulted in a significant outflow of capital from the former original chain of the collapsed Terra (LUNA) ecosystem. The token’s market cap stands at $944.33 million, representing a loss of about $146 million in 24 hours, with the decline coming after LUNC reclaimed the $1 billion market cap on December 27 for the first time since December 14.
The drop in value coincides with a decision by crypto exchange Binance on the burning LUNC tokens to help reduce supply. In this line, the exchange announced that it would be burning 50% of the LUNC spot and margin trading fees instead of 100%.
Binance decision on LUNC burning
At the same time, Binance noted that it will delay sending LUNC trading fee burn contributions until March 2023. The decision was made following the guidelines under Proposal 10983 and Proposal 11111 by the community. Notably, the LUNC community is voting on the proposals that seek to reverse a decision to transfer 50% of all LUNC burns to a community development pool.
It is worth noting that the emergence of the proposal acted as a critical catalyst for the LUNC rally as the community moved to reduce the token’s supply. Overall, following the collapse of the Terra ecosystem, the community has turned to network development in an attempt to give Terra Classic more utility.
In the meantime, the asset is still susceptible to news about Terra founder Do Kwon who remains in hiding. For instance, LUNC recently tanked after news emerged that Kwon was hiding in Serbia.
LUNC technical analysis
Following the sharp crash, LUNC’s one-day technical analysis on TradingView is predominantly bearish, with a summary aligning with the ‘sell’ sentiment at 9. Moving averages are also for ‘sell’ at 7, while oscillators align with the ‘neutral’ sentiment at 8.
Indeed, attempts to increase Terra Classic’s utility continue to face uncertainty considering the network still faces the impact of the general market correction.
Finally, the PricePredictions machine learning algorithm forecasts a bearish future for LUNC, indicating that the asset might trade at $0.000126 on January 1, 2023.
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