LUNC Price Nosedives Amid Token Burning Strategy to Boost Demand

• Terra Classic Community burns 210 million LUNC tokens to boost demand.
• Throughout the last day, the price of LUNC has ranged from $0.0001625 to $0.0001712.
• Indicators reveal that the market is approaching oversold territory.

In an effort to reduce the global token supply, the Terra Classic Community burned 210 million LUNC tokens in January. Token burns will increase the token’s scarcity, driving up the token’s value and the currency’s market capitalization. Despite this, the bears have gained power in the previous 24 hours, lowering the price to $0.0001625, where the market found support. As of press time, LUNC price had dropped by 3.01% to $0.0001663.

While the market value decreased by 2.70% to $992,659,257 as a result of the decline, the volume of 24-hour trading climbed by 15.64% to $95,213,509. Increased demand for the token will act as a driving factor to enhance its price, thus an upturn in the coming hours is not totally out of the question as a consequence of this spike.

With the upper Bollinger band at 0.00018440 and the lower band at 0.00016327, it seems that the LUNC market is levelling out as buying and selling pressure are nearly equal. Despite this, bearish sentiment and continuing downward pressure persist as the price zone approaches the lower band. This consistent negative movement towards the lower band shows that the bears’ grip may tighten if bulls do not step in.

The LUNC market has a Bull Bear Power (BBP) of -0.00000976, indicating that sellers dominate the market. As a result of a lack of buyer interest, the price of LUNC is likely to fall further in the near future. The falling BBP reading reflects this lack of confidence and suggests that buyers are choosing to remain on the sidelines while the market’s future direction is unknown.

With a rating of -2.042k, the Elder Force Index (EFI) is declining, indicating a bearish reign. This shows that investors are still wary of the market, and that the market’s momentum is declining. This general lack of investor confidence offers the perfect climate for bears, who profit from a lack of willingness to invest in the market, anticipating a further price drop in the short term.

This pessimistic mood is bolstered by a negative Rate of Change (ROC) value of -8.07, indicating that market momentum is expected to decline more in the immediate future. Given the negative market momentum shown by the ROC, this pessimistic outlook is likely to persist, leading investors to become more risk averse.

The stochastic RSI is trending below its SMA line with a reading of 22.32, indicating that the bearish grip on the market is likely to remain firm, with additional short-term losses forecasted. However, as RSI nears the oversold level, it may be a great opportunity to buy in the near future, as a reversal is expected and the stochastic RSI is showing that the current trend is about to peak.

For the bulls to overcome the LUNC market’s unfavorable signs, prices need to break above and stay above the present level of resistance.

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