Key Insights:
- LUNA Classic price action expanded to the downside as the Bollinger Bands stipulated while the MACD confirmed the bearish sentiment.
- A single wallet transaction on the Terra Classic chain resulted in the burning of 135,000 USTC.
- The LUNC community took action to prevent further collapses and questioned the collapse.
While several other cryptocurrencies saw a bit of relief, LUNA Classic continued to decline.
LUNA Classic News and Price Prediction
On the weekly chart, LUNA Classic exhibited bearish momentum as its price action approached the downside, following the Bollinger Bands.
The trading price of LUNA Classic reached $0.1555 before approaching the $0.1158 level which served as its key support level as of press time.
Heavy selling pressure kept pushing prices of LUNA Classic down as the lower band remained contracted and no heavy buying activity was seen to halt this decline.
This made the $0.3115 level a crucial level of resistance for the middle Bollinger Band.
If LUNA Classic successfully broke through the $0.3115 middle Bollinger Band price level, it could indicate an ending of the bearish patterns and ignite future upward price movement towards $0.6074.
However, LUNA Classic was likely to extend its bearish trajectory if the price failed to regain support at $0.3115 as this would preserve the bearish momentum and drive prices into new detrimental areas.
Bears received additional confirmation from the MACD indicator that had its line sharply beneath the signal line with corresponding readings set at -0.0778 and -0.0670.
The last MACD histogram reading reflected bearish pressure worth -0.0108.
The price movement would stay stable without a crossover between the MACD and signal lines. This would increase the downward pressure on the market.
A sustained negative price trend and successive drop in the $0.1158 support level would cause LUNA Classic to fall towards its past low near $0.0800.
A positive shift among indicators combined with the recovery of higher resistances above $0.3115 would power buying momentum toward rising targets near $0.6074.
LUNA Classic News on its Stablecoin
Despite the bearish sentiment reigning, LUNA Classic news was positive. Upon executing a LUNA Classic blockchain transaction, 135,000 USTC were immolated.
A total of 167.957 USTC constituted fees when 33.5 Million USTC were moved through the transaction.
After this transaction, 135,000 USTC were instantly burnt until the remaining 32,000 USTC were allocated to the Community Pool and Oracle Pool.
The ongoing deflationary framework led to incessant reductions in USTC and LUNC circulating supplies because of constant burning activities.
LUNA Classic could stabilize or gain theoretically because supply decreases under management would equate to stable demand levels in the market.
However, the maintenance of price impacts depended on general market situations and investor reactions.
The series of burning events raised optimism among holders, although, these mechanisms did not ensure price recovery when considered independently from other LUNA Classic blockchain activities.
Market perception about LUNA Classic token could grow positively if burning events are consistent for a long period of time.
What is the LUNC Community Upto?
Lastly, the LUNA Classic community was born as a result of the devastating crash of the LUNA and USTC markets.
The stakeholders directly asked for explanations. For the failure and dared the stakeholders to report faithfully and answer for their actions.
The community promised to protect investor rights and build strong defense mechanisms that prevent such collapses.
Market participants and investors might feel reassured through a combination of community action, transparency, and governance improvements. Even if the token price faces downward pressure.
The long-term price recovery largely relies on fundamental technological and structural development within LUNA Classic, not just community backing.