LUNC price remained in a consolidation phase on Thursday even as the Terra Classic USD bounced back. Terra Luna Classic was trading at $0.00025, where it has been in the past few days. This price is about 61% below the highest level in September.
Terra Luna Classic retreats
LUNC price has been in a tight range as investors focus on the new burn rate mechanism that was passed by community members.Â
In a vote, members decided to reduce the LUNC burn rate of transactions from 1.2% to 0.2%. The burn rate is a mechanism that helps to boost the value of a cryptocurrency by reducing the total supply. As such, it will take about 30 years to burn 10 billion LUNC coins.
This vote was important because most holders of the token participated in the vote. About 83% of all holders voted, which is a remarkable figure.Â
According to LUNC Burner, over 22 billion LUNC tokens, equal to 0.32% have been burned in the past few months. On Thursday, the total burned coins were about 242k coins. As a result, the number of circulating supply has dropped to over $6.5 trillion. Meanwhile, the ratio of bonded and non-bonded tokens has moved to 10.6%.
Meanwhile, the number of total LUNC addresses has been in a slow downward trend. There are now over 11,718 total addresses, which is lower than the all-time high of 11,846.
Terra Classic Dollar has also wavered as investors focus on the ongoing recovery of the Terra Classic USD. The former stablecoin, USTC, has risen by more than 13% in the past 24 hours. It was trading at $0.039, which is significantly lower than its key level of $1.Â
LUNC price forecast
So, is it safe to buy Terra Luna Classic? The hourly chart shows that the LUNC price has been in a strong bearish trend in the past few weeks. The coin is hovering at the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved above the neutral point. It has formed a bullish divergence pattern.
Therefore, the coin will likely continue falling as sellers target the next key support level to watch will be at $0.00024. A move above the resistance level at $0.00026 will invalidate the bearish view.
