Binance Burns Terra Luna Classic Tokens, Why Is LUNC Price Down?

The world’s largest crypto exchange Binance made a mid-month burn of Terra Luna Classic tokens on Thursday. While the community eyes the Common InterChain Summit to hear important developments regarding LUNC and USTC, prices continues to remain low.

Binance Sends More LUNC Tokens to Burn Address

Crypto exchange Binance has burned Terra Luna Classic tokens for the 5th time this month. It sent more than 24,853 LUNC tokens to the burn address, as per a transaction on June 19.

With the latest burn, Binance has burned in total 498.6 million LUNC this month. Also, the net total burn by the crypto exchange to date has reached 73.04 billion tokens. This represents 17.8% of the total LUNC burned by the community.

Notably, the Terra Luna Classic community has burned 411.17 billion Terra Classic tokens to date. Over 383 million tokens were burned in the last 7 days, with a massive 200 million LUNC burned on Wednesday.

This marks one of the largest single-day burns in recent weeks, pushing the total circulating supply down to 6.49 trillion LUNC.

Terra Luna Classic Community to Attend Cosmos InterChain Summit

The Cosmos InterChain Summit is scheduled to be held in Berlin, Germany on June 20-21. Many key members, including developers, from the Terra Luna Classic community are expected to attend the event.

Also, the community could hear about important developments regarding the Terra and Terra Classic chains. The proposal by validator Vegas to reactivate the market module will be closely monitored by the Terra Classic community.

The depletion of the oracle pool has become a concern for the community. It has dropped from 115 billion to 69 billion LUNC tokens in a year timeframe.

Why LUNC Price Continues to Drop?

LUNC price has jumped nearly 0.5% in the past 24 hours, with the price trading at $0.00005718. The 24-hour low and high were $0.00005667 and $0.00005836, respectively.

Furthermore, the trading volume has decreased by 27% in the last 24 hours, indicating a decline in interest among traders. The decline in trading volume is due to reports that the United States prepares to possibly strike Iran as the conflict between Israel and Iran escalates.

The formation of a “death cross” in February has kept the price to fall lower. It is clearly evident in the daily chart, depicting a crossover of 50-SMA (blue) below 200-SMA (red). This signals a shift towards a bearish or downward trend.

The major support for LUNC was near $0.000055. If it fails to maintain the $0.000055 support, LUNC price could drop to the $0.000045–$0.00005 range.

Also, another indicator showing bearish trend is exponential moving average (EMA). The shorter-term 20-EMA has crossover below the 50-EMA. This signals the low odds of a recovery in LUNC price in the coming days unless a major event reverses trend.

Meanwhile, total 1000LUNC futures open interest jumped 0.77% in the last 24 hours, according to CoinGlass data.

The open interest jumped 1.54% in the last 4 hours on Binance indicating a rise in sentiment among derivatives traders. But open interest dropped 1.32% on Bybit.

Moreover, the total LUNC futures open interest has also declined slightly in the last 24 hours. At the time of writing, the total LUNC futures OI was at $8.21 million.

Notably, total open interest has dropped on many crypto exchanges. OKX and Bitget saw a 0.32% and 3.28% drop in LUNC futures OI over the last 4 hours.

The post Binance Burns Terra Luna Classic Tokens, Why Is LUNC Price Down? appeared first on The Coin Republic.