- Binance has burned a whopping 1.2 billion LUNC tokens.
- Binance only burns two tokens: LUNC and BNB.
- LUNC surged 4.6% in the past 24 hours.
Binance, the world’s leading crypto exchange by trading volume, has burned 1.2 billion LUNC tokens, further reducing the circulating supply. This move has been met with enthusiasm from the Terra Classic community, who anticipate a positive impact on LUNC’s price.
Binance’s burn mechanism focused solely on its native BNB token and LUNC, refraining from participating in similar events for other cryptocurrencies. Historically, significantly reducing a cryptocurrency’s circulating supply often leads to bullish price action.
As the Terra community anticipates LUNC’s price trajectory to turn bullish soon, according to the data from CoinMarketCap, LUNC has surged 4.62% in the past 24 hours and the cryptocurrency is trading at $0.00007841 at the time of publication. While it has experienced a slight dip in the past week, the token has seen a 5.07% increase over the last 30 days and a 29.92% rise since September 2023.
Despite LUNC’s current price being a far cry from its all-time high of $119.18, the recent burn and growing accumulation suggest a potential trend reversal. LUNC’s ATH was witnessed in 2022 but the collapse of the Terra ecosystem under Do Kwon has since brought the digital asset’s value reduced to a zilch.
As per the chart provided by TradingView below, the downtrend of the LUNC/USDT pair continues as the selling pressure has surged recently in the market. Additionally, the accumulation of the token is gradually on the rise and with depleting supply of tokens in circulation, higher prices are possible.
The Relative Strength Index (RSI) confirms that bears are in control for the short term but the gradient of the line suggests that the trend might change in the near future. The value of the RSI indicator stands at 46.90 and if the market turns bullish, there is a possibility of higher prices.
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