Due to rising selling pressure, the price of Terra Classic (LUNC) has witnessed a considerable decline, which has hindered continuing attempts to save the token.
Specifically, as of press time, LUNC was trading at $0.00015, with a price decline of over 13% over the previous 24 hours. On the daily chart, the top value of the token was $0.00017.
This selling has also resulted in a considerable money outflow from the collapsed Terra (LUNA) ecosystem’s previous original chain. The token’s market cap is now $944.33 million, marking a loss of around $146 million in 24 hours. The fall occurred after LUNC regained the $1 billion threshold for the first time since December 14 on December 27.
The price decline corresponds with the crypto exchange Binance’s intention to burn LUNC coins to limit supply. In this statement, the exchange indicated that it would only be retaining 50% of the LUNC spot and margin trading fees.
Binance also announced that it would not distribute LUNC trading fee burn donations until March 2023. The decision was reached by the community in accordance with the stipulations of Proposal 10983 and Proposal 11111. Notably, the LUNC community is voting on plans to revoke a decision to move fifty percent of all LUNC burns to a community development fund.
Notably, the proposal’s introduction served as a crucial trigger for the LUNC rise as the community sought to restrict the token’s supply. After the collapse of the Terra ecosystem, the community has shifted its focus to network development in an effort to increase Terra Classic’s usefulness.
In the meanwhile, the asset remains vulnerable to news on Terra’s creator, Do Kwon, who remains in hiding. For example, LUNC recently dropped on the revelation that Kwon was hiding in Serbia.
Following the rapid decline, the one-day technical analysis for LUNC on TradingView is mostly negative, with a summary corresponding to the ‘sell’ sentiment at 9. Moving averages also indicate a sell signal at 7, while oscillators indicate a neutral feeling at 8.
Attempts to boost Terra Classic’s usefulness continue to be hampered by uncertainty, as the network continues to feel the effects of the overall market downturn.
Lastly, the machine learning system at PricePredictions expects a gloomy future for LUNC, saying that the asset might trade around $0.000126 on January 1, 2023.
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