In the last 24 hours, the price of Terra Luna Classic, a rebranded version of the original Terra Luna chain, has increased by approximately 65%. On Tuesday, the token outperformed the whole crypto market as well as market giants like Bitcoin and Ethereum. In percentage terms, its weekly rise has now reached triple digits. Meanwhile, the Terra Luna branch of the new Terra chain increased by more than 16%. In the cryptocurrency market right now, Terra Luna Classic is one of the most popular trending cryptocurrencies.
Let’s first understand what happened to the Terra Luna Chain that gave birth to Terra Luna Classic — The star of the last 24-hour crypto market.
What is Terra Luna Classic ( LUNC )?
The LUNA catastrophe of May 2022 left a lasting impression on traders and investors around the world. The biggest algorithmic stablecoin, UST, was depegged from the US dollar at that time. What came next was a disastrous value erosion that was estimated to be worth over $40 billion. LUNA, the native token of Terra, dropped from $80 (about INR 6200) to almost nothing. After the collapse of the Terra luna chain Luna Classic (LUNC) is the original Terra Luna coin left behind following the launch of a new Terra chain named Terra Luna 2.0. In Kwon’s ambitious scheme for recovery, a brand-new chain for future transactions was established. The Terra Classic chain and the Luna Classic were left. The newly created chain bears the name Terra, as does its Luna token, usually known as Luna 2.0. Additionally, the 6.5 trillion Luna circulating supply is carried over into Luna Classic.
Terra Luna Classic (LUNC) Price Prediction September 2022
Investors expect continued good price momentum during the rest of September, which has brought Terra Luna Classic back into the spotlight.
Technically speaking, Terra Luna Classic (LUNC) cryptocurrency appears to be very bullish and has recently broken all-important resistance levels in the first week of September 2022.
The $0.000305 support level must be respected by LUNC in order to stop any decline.
The Terra Luna Classic (LUNC) cryptocurrency is currently contained within a traditional bull pennant, and another breakout to the upside is likely possible as per the trade analysis. We may guess that the technical price target for this bullish pattern would raise us to about $0.000501 by measuring the flagpole of the formation.
The fact that Terra Luna Classic is also above the top trendline of the Bollinger band further suggests that a bearish reversal may be on the horizon.
The 20-day moving average is now overextended, thus a pullback and retest of this level would be beneficial to determine if we can maintain important support levels around $0.0003.
It almost seems as though Terra Luna Classic is currently fully independent and unrelated to Bitcoin and the other cryptocurrency markets or market sentiment.
I predict that if Terra Luna Classic can maintain favourable price action, we may eventually reach $0.0005 in the next two days.
Why Terra Luna Classic Price is Pumping Everyday
On August 23, LUNC made its initial exit from a declining resistance line. The line had previously been in place since May 17. Since the low on May 13, this was the first bullish indication.
Following that, the price rose steadily until picking up speed on September 1 and significantly quickening its rate of climb.
LUNC reached a high of $0.000035 on September 5. The initial upward movement’s 4.61 Fib retracement served as the high. The last resistance level in relation to that initial climb is at this point. Important resistance would be found at $0.00052 if the price rises above this mark. But Why does this is happening –
The total circulating supply of Terra Luna Classic according to the coin market cap is 6.15 trillion LUNC tokens. And to minimize this Terra Luna Classic Tax Burn is coming.
Terra Classic Tax Burn — Explained In Detail
Members of the cryptocurrency community are talking about the Terra Classic tax burn. What will happen to Luna Classic, the native token of the original Terra network, has been the subject of numerous discussions recently (LUNC). Tera Classic [LUNC] has had a busy few days because they were about to make a significant development.
The community has been concerned about the glut of LUNC supplies ever since the market meltdown in May. This problem is being solved by the 1.2% tax. The idea of a massive token burn has been floated for months by a group of individuals looking to make quick money by sparking a rally in the cryptocurrency asset. This move would reduce Terra Classic’s supply and raise the price.
What is Terra Luna Classic Tax Burn?
In June 2022, the first thorough proposal for this transaction tax was made. It did not, however, describe how this would work or the coding that would need to be added to the network’s core in order for it to function.
Edward Kim, a member of the community, however, recently offered a more thorough plan in Terra Classic’s official forum that included additional information about how the Tax will operate.
Early in 2022, Terra Luna failed, and the crypto industry experienced a sharp decline. The demise of such a significant corporation sent shockwaves through the sector, resulting in “crypto winter,” one of the most challenging periods for cryptocurrency traders.
People have been concerned about the supply of Terra Classic ever since the market meltdown in May. This problem should be alleviated by the 1.2% tax. Terra Luna is well-known to traders. Therefore, where did Terra Classic originate? After Terra Luna’s demise, Do Kwon devised a strategy to rebuild the ecology. And so Terra 2.0 was created.
A new layer-1 Terra blockchain without its algorithmic stablecoin was effectively created under the concept. Terra Classic is the new name for the previous blockchain (LUNC). The new blockchain is formally known as Terra (LUNA).
The 1.2% tax may not be well-known to many LUNC traders and prospective traders, so here is a brief explanation. A 1.2% fee will be applied to each on-chain Terra Classic transaction. This also covers communications between wallets and smart contracts. Trading on an exchange, however, might not qualify for the Tax.
The Tax’s purpose is to help lessen Terra Classic’s oversupply. One of the greatest disadvantages is that this strategy would increase the cost of on-chain transactions.
Even while the community is moving more in the direction of tolerating a deflationary price, it’s still unclear whether or not projects that are currently in development will find this difficult.
Final Thoughts
The Terra Luna Classic Tax Burn will surely create the scarcity of the token which can be seen as the demand increase and thus resulting in an enormous price increase. If we look at the next few weeks, analysis shows that the price surge will continue creating a new resistance curve for terra luna classic at $ 0.0005002.
On the other hand, According to data from CMC, the majority of LUNC trade takes place on centralised exchanges like BuyUcoin, Binance, Gate.io, and Huobi. Some exchanges may decide to begin trade for the token if the community accepts this proposal because they support or concur with the 1.2% tax burn.
BuyUcoin is also supporting the tax burn as buying and selling of terra luna classic will soon start for the users, which will eventually help the investors to gain some momentum as well as diversify their portfolio.