Terra Classic Price Analysis Hints Major Reversal to $0.0002 Amid New Tax Distribution Plan
Highlights
- The LUNC price potential breakout from $0.000122 resistance will signal a major trend reversal.
- The recent approval of proposal 12114 for Terra Luna Classic (LUNC) could accelerate demand pressure in LUNC due to burning 80% of the collected tax and long-term focus on stacking rewards.
- The intraday trading volume in the LUNC coin is $34.2 Million, indicating a 29% loss.
Terra Classic Price: June has been a particularly bearish month for the cryptocurrency market, with Bitcoin and Ethereum dropping to four-week lows of $64,000 and $3,350, respectively. The broader market downturn has also affected Terra classic coin, which experienced a sharp reversal from $0.000125. The bearish turnaround plunged the asset 36% to a low of $0.000079 before reverting above $0.00008668. Can buyers make a counter by June-end or will the bloodbath continue?
Also Read: Crypto Prices Today June 19: Bitcoin Regains Hold Above $65K, LDO & ENS Lead Market Rally
Will LUNC Eyes Major Reversal With this Range Breakout
Over the past two months, the Terra Classic coin has been trading in a sideways trend resonating within two horizontal levels of $0.000122 and $0.000086. The altcoin rebounded several times from these levels indicating no initiation from buyers to sellers to lead this asset.
Amid the recent market correction, the LUNC price plunged to the $0.0000868 mark seeking support at the range bottom. The long-tail rejection candle at $0.000086 on Tuesday, hints the buyers continue to defend this support.
As per a recent update, the Terra Luna Classic (LUNC) community has overwhelmingly approved proposal 12114, which revises the LUNC burn tax distribution. This new plan, supported by over 98% of voters, will adjust the allocation of the 0.5% burn tax, with 80% going to burns and 20% split between the Community Pool and Oracle Pool. This change is set to take effect in mid-July, potentially impacting immediate block rewards but boosting long-term staking rewards.
This development should show a slow yet steady positive impact on the Terra Classic price. Enhanced staking rewards should attract long-term investors, while burning 80% of the collected tax might reduce supply, potentially increasing the token’s value.
Thus, the anticipated reversal from the range bottom will again push the asset 37% to challenge the $0.00012 resistance. However, a sustainable breakout from range resistance with daily candle closing is needed to trigger a directional trend in LUNC.
The post-breakout rally could push the altcoin to the immediate target of $0.000173, followed by an extended rally to $0.00025.
However, if the overhead supply persists, the altcoin will prolong its consolidation phase for another week or months.
Technical Indicator
- BB Indicator: The lower band on the Bollinger band challenged downward with the falling price indicating the high momentum selling pressure in the market.
- RSI: The daily Relative Strength Index slope on the verge of falling below 30% to enter the oversold region could attract dip buyers in LUNC coin.
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