After a week of notable declines in Terra Luna Classic (LUNC) value, the altcoin has sparked hopes of a potential revival. Recently, buyers have boldly capitalized on LUNC’s price dip, establishing robust support and forcing the price into an upward correction. Nonetheless, concerns are rising over a possible pause in the recovery rally, as sentiment could quickly shift if buyers encounter low confidence near Fibonacci channels.
LUNC’s Open Interest Gains Momentum
In recent weeks, Terra Luna Classic community has been making significant moves in its burning mechanism. LUNC community has successfully burned 76.04 billion LUNC, achieving a new milestone in their sustained efforts to curtail the circulating supply of LUNC since May 18, 2022. Binance has burned an impressive 38.81 billion LUNC, contributing to nearly 50% of the total LUNC burned thus far.
On average, the community burns 440 million LUNC weekly, while Binance dispatches billions to the burn address through its monthly LUNC burn procedure. In the 14th installment of the LUNC burn mechanism on October 1, Binance burned in excess of 1 billion LUNC tokens, pushing the total LUNC obliterated by the cryptocurrency exchange to a monumental 38.81 billion to date. This is the main reason behind LUNC price gaining buying confidence.
Examining from an on-chain viewpoint, LUNC’s open interest experienced a $50K reduction on October 9, due to its 2-month price low. Nevertheless, the OI metric has since rebounded, recording an uplift of over $30K from the previous day’s standing, indicating a rise in futures positions due to a spike in price volatility.
Interestingly, the long/short ratio recently witnessed a surge, peaking at 1.002. This implies that traders are progressively taking bullish positions, commanding the price with 50% long-positions. Conversely, sellers are now responding by establishing 50% short-positions.
What’s Next For LUNC Price?
Buyers triggered renewed buying interest in LUNC after the price touched the low of $0.000054. As a result, LUNC price is now attempting to escape its bearish territory; however, sellers will strongly defend a surge above EMA20. As of writing, LUNC price is trading at $0.0000568, surging over 1.1% from yesterday’s rate.
If the bulls successfully hold momentum and send the price above EMA20, LUNC price might target the resistance at $0.000068. A successful breach would indicate the initiation of a new uptrend, potentially taking the LUNC price toward the high of $0.00008.
On the flip side, should the price recoil from its current position and plummet below the crucial support line of $0.000052, it may imply that bulls are capitalizing on rallies. This scenario could confine the price with a bearish range at $0.00005 for a few days. However, the rising RSI toward the midline suggests an advantage for buyers, weakening the immediate resistance level.