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- Terra Classic (LUNC) has dipped 15% since setting a weekly high on Mar. 31 amid a broader market sell-off that has seen the industry shed $170 billion in the past five days.
- LUNC has, however, managed to stay above the 200-day EMA and maintained an ascending support trendline that analysts say could lead to a bounceback in the coming days.
Terra Classic (LUNC) has ended the week on a low, shedding over 15% in the past five days amid a wider market correction that has seen Ethereum lose 9.5% while DOGE dipped 22.3%.
LUNC trades at $0.0001356 at press time, 3% lower on the day, to hit $788 million in market cap, slipping outside the top 100. In the past week, it has lost 13.21%, and since setting a weekly high on Mar. 31 at $0.0001611, it has shed 15.89%.
Despite the dip, analysts believe Terra Classic could be poised for a comeback. As the graph below shows, LUNC has managed to stay above its 200-day exponential moving average (EMA).
Additionally, the crypto has stayed above an ascending support trendline, which has provided formidable support; every time the price has tested this support during a downward spiral, it has stayed strong and offered a bounceback for the token. As seen on the graph, the downward trend is heading towards this trendline and, judging from previous patterns, it looks set for a reversal and subsequently, upward movement.
In a more exciting analysis for long-term holders, LUNC has been trading in a triangular pattern, and any surge to breach the upper trendline could set it up for massive gains, although this is more of a long-term play.
Binance Burns 4 Billion Terra Classic as Do Kwon Trials Nears End
Away from the technical analysis, two other key events happened this week for Terra Classic. The first was a massive token burn by the world’s largest crypto exchange, Binance, that eliminated 4.17 billion LUNC tokens. Binance has been committed to reducing the supply of the tokens to boost its price.
Since it started, the exchange has burned over 56 billion tokens, over half of the 109.9 billion the entire ecosystem has burned, underscoring the exchange’s significance in the Terra Classic community.
However, despite the burn, LUNC’s supply is still massive. According to Lunc Metrics, the network now has 5.82 trillion in total circulating supply. With an average of 4.5 billion burned weekly, the ecosystem would take over twenty years to bring the supply down to one trillion tokens.
Another significant event for LUNC is the Do Kwon case. Lawyers for the fallen South Korean crypto king will present their final arguments to the jury today, Apr. 5. Kwon is still detained by authorities in Montenegro as his home nation of Korea continues to fight for his extradition with the US, where the SEC and DOJ have filed charges against him.
